CryptoQuant CEO Ki Young Ju suggests that the consolidation of 2,000 Bitcoin into a single wallet indicates a liquidity crisis on the sell side, which could lead to increased volatility and price fluctuations. The transactions seem to have been conducted over-the-counter (OTC), where there is a shortage of available assets in the market, making it difficult for sellers to find buyers or execute trades at desired prices. This movement of Bitcoin highlights the awakening of old Bitcoin due to this crisis.
An unidentified individual or entity, who received 2,000 Bitcoin as mining rewards in 2010, recently consolidated them into a single wallet. This transaction took place on March 26 and was observed by developer Mononautical on X. It involved combining 40 batches of mining rewards, each consisting of 50 Bitcoin, into one wallet.
Bitcoin miners receive compensation for verifying blocks on the network, with each block initially yielding 50 Bitcoin. However, the reward is halved approximately every four years. The upcoming Bitcoin halving is expected to decrease block rewards from 6.25 BTC to 3.125 BTC. The exact date of the halving is anticipated to be around April 21, although it is subject to change.
The Bitcoin rewards received by this unknown entity were valued at around $600 when they were originally mined. Currently, they are worth nearly $140 million, according to Cointelegraph’s price index page. Mononautical pointed out that over the weekend, there was another significant Bitcoin transfer. The fifth-wealthiest Bitcoin address moved $6 billion worth of Bitcoin to three different addresses. This address was funded with 94,500 Bitcoin in 2019 and remained untouched until recently when it was split up and transferred to new addresses, leaving only 1.4 Bitcoin ($99,000) behind.
In January, an individual transferred 26.9 Bitcoin, valued at $1.2 million at the time, from what appeared to be a Binance account to the Bitcoin network’s genesis wallet, where retrieval is impossible. The genesis wallet was the first-ever wallet on the Bitcoin network, set up by the pseudonymous creator of Bitcoin, Satoshi Nakamoto. Furthermore, in July 2023, a dormant Bitcoin wallet holding over 1,037 Bitcoin, worth $31 million at the time, suddenly woke up after 11 years of inactivity and transferred the entire stash.
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