A new whale alert says that an old Bitcoin address started activity after about a decade. The new activity can have a considerable effect on the market because it holds a considerable amount of Bitcoin.
Old Bitcoin holders starting an activity or exchanging their assets may mean they want to sell their BTC, which may decrease the price. This one Bitcoin may not affect the whole market considerably, though.
Anyhow, it may have an emotional effect on retail traders who sell their holdings because of fear of value loss.
Whales Still Affecting the Market?
Whale activities have always had emotional effects on the crypto market. Many traders follow the whale trends and consider their buy/sell activities as red flags. Whales in the crypto market are the people (addresses to be concise) that have a lot of an asset in their holdings. These whales can work together and start selling a huge amount of an asset that surely affects the price.
Considering Bitcoin, there are some whales out there that have been in the market since the first days. A recent whale alert from the Twitter account @whale_alert says one of these old accounts has started activity again.
According to the tweet, the old account has been inactive for 9.1 years and held 791 BTC – about $26,270,692. The address became active about 12 hours ago and sent 640 BTC to a new address. It may be a sell transaction that can affect the price considerably. The BTC price went from $34.4K to $32.9K today and is now currently trading at about $33.2K. It’s not clear that the latest price change is a result of whale movement or anything else, though.
The overall activity of the dormant Bitcoin activity shows it’s a HODLER account for sure. It has been holding a considerable amount of Bitcoin for a long time and has sent a large portion of it to a new address lately. You can see the details of the address here.
As mentioned above, we can’t say one transaction affects the whole BTC market for sure. But when old addresses send their holdings to new addresses, many people may feel the emotional need to sell, which can have a domino effect on the market. We have to wait a bit more and see if the recent activity has any big effect on the market.
It’s interesting to know that the price of each BTC in 2012 was about $5. We can conclude the so-called dormant BTC address has seen a 6,440X profit by holding their BTC for about nine years.
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