Dormant Bitcoin Whale Moves $535 Million Worth of BTC to Binance After Registering 1,700% Gain

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As a long-term crypto investor with experience in the market since 2017, I find this recent activity by dormant Bitcoin whales and their massive long positions on leading exchanges like Binance intriguing. I remember vividly the bear market lows of 2018 when Bitcoin’s price dipped below $3,800, and it’s astonishing to see that these investors had the foresight and patience to hold onto their coins for over five years.

As a financial analyst, I’ve discovered that a Bitcoin ($BTC) investor, who had previously kept their 8,000 coins dormant in their wallet, has recently transferred them to Binance. They purchased these tokens during the bear market in late 2018 when the price was approximately $3,800 per BTC.

Based on information from the on-chain analysis platform Lookonchain, a Bitcoin wallet that hadn’t been active for more than five years has recently transferred 8,000 BTC, which they bought in December 2018 when the price of Bitcoin was at its bear market low of $3,200. The purchase cost for these coins amounted to approximately $30.4 million.

Currently, the primary cryptocurrency is priced at around $67,800 in the market, resulting in a value exceeding $535 million when the transaction was made to transfer the funds to the premier cryptocurrency exchange.

A wallet that had been inactive for approximately 5.5 years, last active on Dec 6, 2018, recently transferred 8,000 Bitcoin (equivalent to around 535.64 million dollars at the time) to Binance about 40 minutes ago when Bitcoin’s price was roughly $3,810 per coin.

— Lookonchain (@lookonchain) June 11, 2024

As a researcher studying the cryptocurrency market, I’ve noticed a significant development among major Bitcoin investors, or “whales,” in recent times. They have been actively purchasing large quantities of Bitcoin through popular exchanges such as Bybit and HTX, around the price point of $69,000.

According to Ki Young Ju, the CEO of cryptocurrency analysis firm CryptoQuant, an intriguing development is currently unfolding in the world of Bitcoin. Large positions held by Bitcoin whales, or significant investors, are once again being amassed. This observation is noteworthy due to a striking resemblance to events that took place in August 2023. During that time, these same Bitcoin whales opened sizeable long positions, which set the stage for Bitcoin’s price to surge from approximately $25,000 to a record-breaking high above $73,500.

Significantly, CryptoQuant has disclosed that large Bitcoin wallets, holding approximately $1 billion in BTC daily, have been actively accumulating. This substantial increase implies that these funds are most likely being held for long-term storage.

Young-Ju drew a comparison between Bitcoin’s present trends and the market scenario of mid-2020 preceding the bull market in 2021. During that interval, Bitcoin’s price remained quite steady. However, behind the scenes, there was significantly heightened activity, particularly in over-the-counter (OTC) transactions involving institutional investors.

Over the last six months, Bitcoin’s price has remained relatively stable. However, an intriguing development can be observed in the realized capitalization of new large-scale Bitcoin investors, often referred to as “whales.” This metric signifies the total value these investors have paid for their Bitcoins. It has demonstrated substantial growth despite the price consistency.

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2024-06-12 17:22