Mysterious Bitcoin Whale Quiet For Over 7 Years Suddenly Woke Up Shortly Before BTC Slipped Under $45k
After reaching a weekly high of $48,000 on Monday, the bitcoin price reversed course and fell to $44,250 on Thursday night, following a 5.1% retracement. According to the Whale Shadows program, a crypto wallet holding about 11,326 BTC (worth $517 million today) eventually woke up on March 29 after several years of hibernation.
Whale Shadows is a tool developed by independent market researcher Philip Swift to follow coins that have been activated after a long period of inactivity. It was created to capture when more than 100 bitcoins were transferred. Swift observes that spikes in this indicator are frequently preceded by big price swings.
“There was a significant movement on-chain yesterday, with +10k BTC that hasn’t moved in 7-10 years finally moving,” the analyst tweeted on Thursday.
The latest movement of the 7-9 year dormant coins was one of the two largest ever in the history of the flagship cryptocurrency, according to data from Swift’s on-chain analytics portal LookIntoBitcoin. The last time ancient currencies experienced such a surge was in December 2017, when BTC dipped below $20,000 for the first time.
This record high was ultimately smashed in December 2020, after three years of excruciating bear market. Swift joked that the monies may be tied to the 2014 heist of Cryptsy, a now-defunct crypto exchange.
Bitcoin has been going upwards in recent weeks as institutional investors have been more interested. The rise is a continuation of the upward trend that began earlier this month when the Federal Reserve authorized the first rate hike in over three years.
On Thursday, BTC fell below $45K, before recovering somewhat to $45,280.52 at press time. Following reports that EU legislators had imposed harsher laws for crypto transactions on Thursday, the price of bitcoin plummeted.
The approved proposal would force cryptocurrency exchanges and other service providers to collect personal information from those who use self-hosted wallets to complete transactions.
Other cryptocurrencies have been affected by Bitcoin’s decline, with Ethereum, XRP, Cardano, Terra, and Polkadot all losing between 1.03% and 5.36% of their value in the previous 24 hours.
In fact, seven out of the previous ten years, April has been a positive month for bitcoin. PlanB believes the dormant cryptocurrency’s stock-to-flow strategy is still on track, despite BTC completing March at $45,517.
Meanwhile, experts at VanEck, a U.S. investment company, predicted that bitcoin might be worth $4.8 million per coin in the future if it replaces fiat money as the global reserve asset in a Thursday note.
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