CryptoQuant founder and CEO Ki Young Ju believes that the movement and consolidation of 2,000 Bitcoin (BTC) by an unidentified individual or entity into a single wallet indicates a “sell-side liquidity crisis waking up old Bitcoin.”
Young Ju pointed out that the pattern of the transactions suggests the coins were sold via OTC. A sell-side liquidity crisis refers to a situation with a shortage of available assets in a market, leading to difficulties for sellers in finding buyers or executing trades at desired prices. This can result in increased volatility and price fluctuations.
An unidentified individual or entity who received 2,000 Bitcoin in mining rewards in 2010 consolidated them into a single wallet.
The transaction occurred on March 26, as observed by developer Mononautical, on X. It consolidated 40 batches of mining rewards, each comprising 50 Bitcoin, into a single wallet.
Bitcoin miners are compensated for verifying blocks on the Bitcoin network. Initially, each block yielded 50 Bitcoin. However, at intervals of approximately four years, this reward is halved.
The forthcoming Bitcoin halving will decrease block rewards from 6.25 BTC to 3.125 BTC. It’s anticipated around April 21, but this date may change.
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The Bitcoin rewards were valued at around $600 when this unknown entity mined these blocks. Now, they amount to nearly $140 million, as per Cointelegraph’s price index page. Mononautical noted:
“Imagine hodling for 14 years as the value rockets from a few hundred dollars to $140 million.”
During the weekend, there was another significant Bitcoin transfer. The fifth-wealthiest Bitcoin address moved $6 billion worth of Bitcoin to three different addresses. According to data from blockchain analytics firm Arkham, the address was funded with 94,500 Bitcoin in 2019.
This Bitcoin sat unmoved until the weekend when it was split up and sent to the new addresses leaving just 1.4 Bitcoin ($99,000) remaining.
In January, an individual transferred 26.9 Bitcoin (valued at $1.2 million then) from what appeared to be from Binance 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 Satoshi Nakamoto, the pseudonymous creator of Bitcoin.
In July 2023, a dormant Bitcoin wallet holding over 1,037 Bitcoin (worth $31 million then) suddenly woke after an 11-year slumber, transferring out the entire stash.
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