Bitcoins active back in 2012 are back on market, and their destination is unclear
According to the most recent Cryptoquant article, the number of ancient bitcoins entering the market circulation increased significantly as the first cryptocurrency dives below the $20,000 threshold.
Why are ancient whales active again?
The increased spending of wallets that were active 7-10 years ago is not something you see on the cryptocurrency market every day. Historically, the spike in the activity of ancient wallets is monitored when the first cryptocurrency makes unprotected moves or reaches long-awaited targets or support levels.
With the cryptocurrency market panicking, long-term holders may also join the sell side and start giving up their holdings to avoid further losses. Usually, such a trend is one of the first signs of capitulation among investors.
If history is destined to repeat itself, we will see the reversal on the cryptocurrency market in the foreseeable future.
5,000 reasons to worry?
According to Block data, 5,000 10-year bitcoins were transferred at the exact same time. Despite the importance of the transaction, it is a relatively small transfer for such a pristine wallet.
Previously, similar wallets were moving up to 100,000 BTC in a short period, creating enormous pressure on the market. But even if the sum were larger, there would be no reasons to panic, as the transfer might be part of a funds redistribution.
In high volatility periods, investors split their holdings into different wallets to manage their assets more effectively. But even if those funds are transferred to sell, such a large amount of coins is likely to go through OTC trading desks instead of being dumped in the market.
