Dormant Bitcoin Wallet From 2018 Moves $535 Million After Years of Inactivity

Dormant Bitcoin Wallet From 2018 Moves $535 Million After Years of Inactivity

A Bitcoin wallet that has been inactive for years has recently come to life, moving 8,000 BTC, valued at approximately $535.64 million, after nearly six years of dormancy. This wallet, dating back to mid-2018, dispersed its holdings to various addresses, including a Binance deposit, coinciding with a significant BTC price drop.

During the early hours of June 11, a dormant wallet executed its first transaction in 5.5 years, transferring 8,000 BTC from Coinbase cold storage, according to Arkham data. At the time of the transfer, the assets were worth $535.64 million.

Dormant Bitcoin wallets, characterized by prolonged inactivity, often create waves when they become active, especially with substantial transfers. Analysts frequently interpret these movements as bearish signals, indicating that large holders, or whales, might be liquidating their assets.

Notably, this wallet activity occurred amidst a BTC price decline, which has fallen nearly 5%. This market volatility resulted in liquidations exceeding $255 million across the crypto market, with long positions accounting for $235 million of that total.

CryptoQuant data indicates that on June 10, the Bitcoin average dormancy was 9.3098. This metric reflects the average number of destroyed days of moved coins, which rises when long-term holders move or sell their coins, potentially signaling an impending price drop.

On May 21, another dormant Bitcoin wallet from 2013 was reactivated, transferring $7.6 million in BTC after nearly 11 years of inactivity. This transaction, as depicted in the chart, coincided with a subsequent Bitcoin price drop from the $70,000 range to $67,000. It’s clear that large holders moving their assets to exchanges often lead to price fluctuations, typically favoring bearish trends.