A amazing development occurred when a dormant Bitcoin whale reappeared after 9.3 years and sent 2,071.5 BTC, or almost $60.7 million, to an address that begins with “bc1q.” On December 19, 2013, when the cost of Bitcoin was just $663, this whale received 6,071.5 BTC for the first time.
This enormous transfer occurred at a time when the market had a severe downturn, and Bitcoin’s price fell below the $30,000 barrier. The 21-day moving average, which normally acts as a short-term support level for the cryptocurrency, has also been breached by Bitcoin. This new discovery raises the possibility that the existing downturn may go longer than previously thought.
Concerns are raised by the whale’s waking and subsequent relocation. After nearly 10 years of inactivity, the transfer of such a sizable quantity might possibly affect market dynamics and boost volatility.
While analysing the possible effects of this occurrence, it is crucial to take the bitcoin market as a whole into account. Even though the transfer made by the whale is unquestionably important, the market has been actively profiting from the volatility and expansion of liquidity caused by the far bigger Ethereum unlock. So, it is doubtful that this one incident would be the only reason for any significant changes in the market.
However, the reawakening of this long-dead whale serves as a reminder of the possibility for sudden market changes, as old wallets hold substantial amounts of assets like Bitcoin or even Ethereum and can always exert pressure on the price that liquidity providers will not be able to cover, particularly if investors decide to sell their holdings on the open market.
