Bitcoin Whale Awakens After 5 Years, Moves $535M to Binance

A Bitcoin whale wallet that has been inactive for five and a half years recently resurfaced, raising concerns over a potential dump. According to data from on-chain analytical platform Lookonchain, this address transferred 8,000 BTC, valued at about $535 million to Binance exchange.

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

Whale Wakes Up After 5.5 Years

On-chain data shows that the dormant address first resurfaced in 2018 when it received 8,000 BTC from 6 different transactions on December. At that time, Bitcoin was valued at $3,810, amounting to $30.4 million in investments. 

However, with the current price of Bitcoin hovering around $67,000, the 8,000 BTC are currently worth approximately $535 million, yielding a whopping $505 million profit for the investor.

Meanwhile, the whale’s recent move was met with mixed reactions from the online crypto community with many speculating that it might signify the investor’s intention to sell while some claim it could be for safekeeping. Usually, dormant Bitcoin wallets, which are addresses showing no activity for long periods, can cause a stir when they suddenly become active, especially with large transfers.

Analysts often see these movements as bearish indicators, suggesting that large holders are cashing in their holdings which might likely cause a significant price drop for the cryptocurrency.

Bitcoin Experiences Turbulent Times 

Interestingly, the whale’s notable Bitcoin transfer comes as the leading cryptocurrency experiences a price drop by 3% in the past 24 hours followed by increased liquidation, a trend that is dragging altcoins to lower levels. The crypto asset has seen about $266 million liquidated. 

Notably, the recent drop in Bitcoin’s price comes amid anticipation of a potential interest rate cut in the United States. Analysts expect high volatility signals this week, ahead of the Federal Open Market Committee (FOMC) meeting and interest rate decision. 

According to market experts, the upcoming FOMC meeting could serve as a catalyst for Bitcoin’s price increase. Their expectation is based on the premises that previous FOMC events have resulted in Bitcoin price rallies. However, whether this happens or not will also be determined by other factors like investors’ sentiments.