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Dormant Bitcoin Whale Offloads $4.7 Billion Worth of BTC
A significant movement in the cryptocurrency market occurred recently as a long-dormant Bitcoin whale, known to have held its assets since 2011, transferred over 40,000 BTC—valued at approximately US$4.7 billion (AU$7.2 billion)—to Galaxy Digital. This marks the whale’s first known cash-out attempt after previously moving its entire stash of 80,000 BTC on July 4.
Whale Activity Explained
The transfers took place between 1:42 a.m. and 5:57 a.m. UTC on a Tuesday, originating from two addresses linked to the same entity. One address dispatched 20,000 BTC in multiple smaller batches, while the other transferred 20,010 BTC, both directed to Galaxy Digital’s over-the-counter (OTC) desk.
This activity sparked speculation regarding the identity of the whale, which remains a mystery. However, it does indicate that a large-volume sale could be imminent, sending ripples of curiosity through the trading community.
Bitcoin’s Market Performance
Interestingly, this news comes on the heels of Bitcoin briefly surpassing Amazon in market capitalisation, achieving a new all-time high of over $122,000. Although BTC has since retraced to trade above US$117,000 (AU$179,000), the returns from this wallet are still staggering, exceeding approximately 2.4 million per cent considering it acquired BTC when prices were below US$30 (AU$46).
For traders and investors, significant transfers are often viewed as indicators of institutional investment behaviour or potential imminent market shifts. Notably, this entity had last surfaced on July 4, when all 80,000 BTC were transferred for the first time in over ten years. The remaining coins are still intact in four separate wallets.
Historical Significance of the Sale
This week’s transfer represents the whale’s initial foray into selling its holdings. Onchain Lens identified this transfer as linked to an early Bitcoin miner who initially moved the funds on Independence Day. The move has created a buzz, as it is common for observers to speculate on the identity of such influential figures in the cryptocurrency space. Suggestions have ranged from high-profile individuals like Roger Ver to speculation involving intelligence agencies or even Satoshi Nakamoto, Bitcoin’s enigmatic founder.
Conclusion: Preparing for Sale
Regardless of the whale’s identity, indications are strong that this wallet is poised for additional selling activity. According to EmberCN, the plan for reducing its holdings makes sense, especially given Galaxy’s OTC desk’s reputation for facilitating large trades with greater privacy and lower price impact compared to public exchanges.
As the situation evolves, market participants will keep a keen eye on further developments from this whale, as it could significantly influence market dynamics.
