An old Bitcoin (BTC) address that has been dormant for 5 and a half years recently resurfaced. According to data from Lookonchain, a popular on-chain analytical platform, the once-dormant address recently transferred 8,000 BTC, valued at about $535 million to the Binance crypto exchange.
History of the Bitcoin Dormant Address
The dormant address first resurfaced in 2018, receiving 8,000 BTC from 6 different transactions on December 5.
A wallet that had been dormant for 5.5 years transferred 8K $BTC($535.64M) to #Binance 40 mins ago.
The wallet received 8K $BTC on Dec 6, 2018, when the $BTC price was $3,810.https://t.co/zvxAKbHKi6 pic.twitter.com/ZKZHdm4JkR
— Lookonchain (@lookonchain) June 11, 2024
According to the details, the highest transaction to the wallet was 8,825 BTC, while the least was 400 BTC. At the time, the price of Bitcoin was $3,810, translating to $30.4 million in investments. With the current price of Bitcoin hovering around $67,000, the 8,000 BTC are now worth approximately $535 million, generating a whopping $505 million profit for the investor.
The recent BTC transfer was met with mixed reactions from the online crypto community. While some claim the Bitcoin transfer to Binance is for safekeeping, others think that the investor wants to claim profits. Another set of individuals says a bear market is on the horizon. Thus, they claim the investor is making a smart move to avoid potential losses to its investment.
Meanwhile, BTC is currently experiencing increased liquidation, a trend that is dragging altcoins to lower levels. As revealed in an earlier Coingape report, the combined crypto market liquidations soared to $93.68 million. Of these liquidations, Bitcoin led the charge with over $14.59 million.
At press time, Bitcoin is trading at $66,224, demonstrating a 5.2% decrease in the past 24 hours, and a 6% decrease in the past week.
This drop is quite substantial as Bitcoin recorded a high of $73,798 in March, driven by inflows into dedicated US Exchange-Traded Funds (ETFs). Notably, the recent drop in Bitcoin’s price comes amid anticipation of a potential interest rate cut in the United States. Many believe the Federal Reserve will follow in the footsteps of the Bank of Canada, and the European Central Bank, which cut down their interest rate last week.
Per an earlier report from Coingape, the Fed is less likely to follow a similar action due to strong jobs data unveiled last week.
Will Bitcoin’s Price Bounce Back
Whatever happens, many market analysts see the upcoming Federal Open Market Committee (FOMC) meeting scheduled for Thursday as a potential catalyst that could drive Bitcoin’s price up. Their expectation is based on the premise that past FOMC events have been followed by rallies in Bitcoin’s price. Whether this happens will also be determined by other factors like investors’ sentiments.
The potential approval of S-1 registrations for spot Ethereum ETF could also fuel a broad market resurgence.
Read More: XRP/BTC Price Prediction: Ripple’s $500 Million Bet On East Asia To Propel XRP Price to $1?
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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
