The recent awakening of Bitcoin “whales” – investors who own large amounts of the cryptocurrency – is generating renewed optimism in the cryptocurrency market. This phenomenon is reminiscent of trends seen in 2021 when an increase in whale activity preceded a major bullish rally.
On December 5th, a transaction involving 1000 bitcoins, which had been dormant for over a decade, was noted by a CryptoQuant analyst known as ‘Maartun’. The reactivation of wallets containing such old bitcoins often triggers discussions within the community due to the lengthy period of inactivity. Bitcoins can remain inactive for various reasons.
In some instances, the coins are lost, leading to permanent inactivity. However, there are cases where the bitcoins are merely forgotten and can potentially be rediscovered. Upon rediscovery, the individual, whether the original owner or not, might choose to sell the bitcoins immediately for profit or wait for an opportune moment in the market to sell.
The Influence of Whales Transactions on Bitcoin’s Value
Interestingly, this is not a one-off occurrence. The analyst from the crypto intelligence firm, CryptoQuant, has spotted over 13 transactions of a similar nature in recent months. These transactions are taking place during a period of bullish trend in Bitcoin, which is being driven by positive news about the potential launch of an ETF.
The analyst’s review of the data also uncovered two substantial transactions, involving 2200 and 3741 BTC respectively, that seem to be indicative of panic selling. These transactions took place during a significant drop in Bitcoin’s value, suggesting a link between the movement of older BTC and market sentiment during difficult times.
At present, we are witnessing a shift back to accumulation among these large-scale Bitcoin holders, with the significant distinction that they are purchasing at elevated prices. This suggests an ongoing belief in the potential of Bitcoin, despite its higher price. Across all groups, there is still a strong trend of coin accumulation, indicating a vibrant and active market.
This activity is reminiscent of the trend observed during the 2021 bull market. At that time, Bitcoin’s price experienced a significant increase, and there were numerous transactions involving Bitcoins that had been dormant for over a decade. It seems that the current market is undergoing a similar phase.