A Bitcoin (BTC) wallet address that has been dormant for years suddenly came to life. Blockchain security company PeckShield reported that a Bitcoin wallet address holding approximately 2,100 BTC became active again and made a transaction.
Sleeping Bitcoin Whales
PeckShield reported that a Bitcoin wallet address, which has been inactive for years and holds approximately $56.3 million at current prices, became active again. On October 19, 2017, the Bitcoin wallet address received 2,100 BTC worth approximately $11.8 million and transferred them to a new wallet address.
The reactivation of the wallet address has been added to the list of recent similar movements, including the reactivation of a Bitcoin wallet address from the Satoshi Nakamoto era after approximately 13 years. There are various reasons for the reactivation of a dormant Bitcoin wallet address. One of these reasons is that the owner of the wallet address wants to take advantage of the current valuation of the currency.
While spending $11.8 million for the 2,100 BTC, the wallet address now holds BTC worth approximately $56.3 million, which represents a significant return on investment. Additionally, it is possible that the owner of the wallet address is preparing for a major sale or investment. On the darker side, sometimes an organization may want to launder funds through crypto mixers or other privacy-focused platforms.
The awakening of such large Bitcoin wallet addresses alone may not trigger a decline, but the expectation of a decline by investors often prompts small investors to sell, leading to a snowball effect.
Current State of the Cryptocurrency Market
The price of the largest cryptocurrency, Bitcoin, is trading at $26,823 with a 0.63% increase in the last 24 hours. The remaining cryptocurrencies on the top five list, Ethereum (ETH), is trading at $1,636 with a 0.36% increase, BNB (BNB) is trading at $216.81 with a 0.17% decrease, and XRP (XRP) is trading at $0.5067 with a 2.87% increase.
On the second day of the week, the total market capitalization of the cryptocurrency market is at $1.07 trillion, with a 0.55% increase. The US Federal Reserve is expected to announce its critical interest rate decision on September 20 at 9:00 PM (GMT+3). Experts warn that there may be high volatility in the cryptocurrency market before and after the critical interest rate decision.