This Dormant Bitcoin Wallet Holding $6.8 Million BTC Just Reactivated, Are They Selling?

Scott Matherson

11 months ago

3 mins read

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Bitcoin has recently been plagued with massive selling pressure, with different entities looking to offload their holdings. This time, on-chain data shows a dormant Bitcoin wallet that transferred over $6.8 million in Bitcoin, suggesting that this whale may also be looking to sell their tokens.

Dormant Bitcoin Wallet Transfers Funds For First Time In 12 Years

On-chain data shows that a Bitcoin wallet (1Nxxi) that had been dormant for 12 years transferred funds for the first time on July 4. The wallet contained $6.8 million worth of Bitcoin, with all these funds moved in two separate transactions. 76 BTC ($4.46 million) was initially sent from the wallet to an unknown address (3Ctd5), and 43 BTC ($2.46 million) was sent in the second transaction to the same unknown address.

The last outflow from this address came in 2012 when 2.98 BTC was sent to an unknown address. These recent transactions have raised concerns for the crypto community because they suggest that the whale in question may be looking to offload its holdings. They also come at a time when Bitcoin is facing significant selling pressure.

As such, a sale of such magnitude could compound Bitcoin’s problems and lead to further declines for the flagship crypto. However, on-chain data shows that the 119 BTC that was transferred is still intact in the unknown address (3Ctd5) to which it was sent. This is undoubtedly a relief for the crypto community since these tokens would have long been sent to an exchange if this whale was looking to offload their holdings.

In the meantime, Bitcoin is still facing intense selling pressure from other entities, including the German government. On-chain analytics platform Arkham Intelligence revealed that the German government is selling up to $175 million worth of Bitcoin. In the last 24 hours, they have moved 1,300 BTC ($76 million) to Kraken, Bitstamp, and Coinbase.

They also transferred 1,700 BTC ($99 million) to an unknown address (139Po). Arkham claimed that the funds to this unknown address are likely deposits for an institutional service or OTC.

Mt. Gox Begins Repayments To Creditors

Defunct crypto exchange Mt. Gox recently announced that it has begun repayments to its creditors. The rehabilitation trustee for the crypto exchange is said to have already made Bitcoin repayments to some rehabilitation creditors through designated crypto exchanges.

This news is significant as it is set to pile more selling pressure on the flagship crypto, with some of these creditors likely to liquidate their holdings upon receipt of their repayment. Mt. Gox is expected to pay its creditors up to $9 billion worth of crypto, with Bitcoin accounting for most of these tokens.

At the time of writing, Bitcoin is trading at around $54,300, down over 7% in the last 24 hours, according to data from CoinMarketCap.

Bitcoin price chart from Tradingview.com — BTC price reclaims $55,000 | Source: BTCUSD on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

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