On October 29, analysts from Lookonchain highlighted a rare event: a major Bitcoin holder, often referred to as a “dormant whale,” conducted a transaction for the first time in 12 years. The move coincided with Bitcoin’s price surge to $71,000, sparking interest within the crypto community, as such activations are often linked to significant market changes.

After the price of $BTC broke through $71,000, a whale with 749 $BTC($53.23M) woke up after 12 years of dormancy and transferred 159 $BTC($11.32M) out!

The whale accumulated 749 $BTC($8,151 at the time) in 2012 when the price was only $11.https://t.co/I98gM9YgSL pic.twitter.com/XPHMKp5gQP
— Lookonchain (@lookonchain) October 29, 2024

Transaction Details

The whale transferred 159 BTC, valued at approximately $11.32 million at current prices, leaving 590 BTC on the wallet. The wallet originally held 749 BTC, purchased in 2012 when Bitcoin traded at roughly $11, with a total acquisition cost of about $8,151.

The activation of dormant wallets containing significant amounts of BTC rarely goes unnoticed by analysts, as these transactions can impact market liquidity and sentiment.

Long-Term Holders and Market Impact

Long-term Bitcoin holders typically acquired their assets during the cryptocurrency’s early, lesser-known years at much lower prices. These investors often hold their BTC for extended periods and rarely engage in transactions.

Large transfers from dormant wallets are often seen as potential signals for market sell-offs or changing conditions. However, analysts caution that such transactions do not always indicate an impending price drop. In volatile markets, these movements can create selling pressure, especially if a substantial amount of BTC enters circulation.

Market Factors Driving the Move

Bitcoin’s recent price surge to an all-time high could have incentivized long-term investors to activate dormant assets. Additionally, such moves might be influenced by the upcoming US elections and associated political uncertainty, which could increase Bitcoin market volatility.

Dormant whale activity offers valuable insights into market sentiment and trends, making these events particularly noteworthy during times of heightened market activity.