A Bitcoin whale has revived after seven years of inactivity in a significant move for the cryptocurrency market, moving a sizable quantity of BTC. The reasons and goals behind these considerable deals have been scrutinized among market watchers.
It was reported that a transfer of 5,000 BTC, or $140 million, occurred from a location that had not been used in three years. The Bitcoin community has taken notice of this huge transaction, and many are speculating on the motivations behind such a significant move.
Other Bitcoin addresses that had been dormant for a while also saw significant activity in September and January, with transactions of 2,100 BTC (amounting to $56.3 million) and 15,000 BTC (amounting to $252.5 million), respectively. Discussions about the motives of the organizations or people that carried out these transactions and their possible effects on the cryptocurrency market have been sparked by these transactions.
It has been ascertained that these transactions can affect market dynamics, liquidity, and general mood. Yet, it is impossible to discern the precise intentions of the parties involved. A BTC account owned by an unknown investor since May 2016 experienced an activity on Tuesday, transferring 2,995 BTC, equivalent to $82.3 million, to another two new unknown addresses.
More Dormant Account Noticed, The Cryptocurrency Market Experiences Significant Increase
On the other hand, another cryptocurrency asset of 1,005 BTC, equivalent to $29.7 million, came from an address thought to have existed during the Nakamoto era. Another primary transfer of 5,000 BTC, equivalent to $140 million, followed up after the former transaction. The day’s address is said to have been dormant for three years.
Data from Investing.Com says that major Bitcoin transfers from a dormant between January and September recorded 2,100 BTC, equivalent to $56.3 million, and another one, 15,000 BTC, equivalent to $252.5 million.
On Tuesday, the price of BTC was recorded at $27,595, indicating a slight rise of 1.1% in the last 24 hours. Recent trade data from CoinGecko shows that the trading volume for the BTC in the last 24 hours also reached $11.98 billion, with a current market capitalization standing at $538.38 billion as of press time.
The Bitcoin community is paying close attention following these developments to understand the ramifications better and the driving forces behind such massive Bitcoin price fluctuations – as well as the mystery surrounding the recent dormant Bitcoin accounts.
In a similar development, Ethereum has been recently touted and tagged as a deflationary asset because of it’s EIP-1559 upgrade. This says upgrade, when completed, will introduce a mechanism that burns a some parts of it’s transaction fees. As at press time, the pressures the said deflationary is getting is not as profound as anticipated, therefore raising doubt about the effectiveness of it’s economic programmed model.