A dormant Bitcoin whale, previously inactive since 2020, has recently sprung to life by transferring 5,000 BTC from wallet address 1LH1dy. This intriguing development was tracked and reported by Arkham Intelligence, a reputable on-chain data provider.
The origin of these BTC holdings can be traced back to a transfer from the Bitcoin mining pool, Poolin, which took place in June 2020. Back then, the price of Bitcoin stood at $9,700, rendering the transaction’s value a substantial $48.5 million.
However, the cryptocurrency landscape has undergone a significant transformation since that initial transfer. As of the current moment, the price of Bitcoin has surged to $27,900, dramatically elevating the worth of this particular whale’s holdings to an impressive sum of approximately $137 million.
According to on-chain data, this Bitcoin whale conducted the transfer by sending 4,000 BTC to one address and 1,000 BTC to another. Notably, both of these receiving wallet addresses are entirely new and remain unlabelled, adding an air of mystery to this crypto maneuver.
Recent trends in the crypto sphere reveal that various large Bitcoin holders have been actively moving their assets from older wallets. In the year’s early stages, we witnessed significant transfers, with 10,000 coins being relocated from wallets that had remained dormant since 2012 and 2013.
Historically, such substantial movements by whales have often been interpreted as bearish signals, as they might indicate an intention to sell off assets. However, it’s essential to consider that in some instances, these holders are merely rearranging their assets by moving them to new addresses before potential further distribution.
The on-chain analytics platform Glassnode has shared insights into this phenomenon. They suggest that the likelihood of Bitcoin holders selling their holdings diminishes after 155 days of inactivity. In fact, recent research by Glassnode indicates that the accumulation of BTC by large holders is on the rise, with approximately 100,000 more BTC being added to their holdings each month.