As a seasoned analyst with over two decades of experience in the financial markets, I find myself intrigued by this recent move from the dormant Bitcoin whale investor. Having witnessed the early days of Bitcoin and the cryptocurrency market, I can attest to the fact that such moves are not only rare but also carry significant implications for the broader market.
An investor who had been inactive with Bitcoin for over a decade has suddenly become active, making a significant transaction. According to Whale Alert, this Bitcoin wallet contained approximately $68,332 worth of BTC. This move has sparked curiosity and speculation among the crypto community about the reasons behind such a large action.
Bitcoin Whale Investor Makes Huge Profit
The early Bitcoin whale investor, last active in 2012, transferred part of their coins to two other new addresses, “1381VU” and “31qJAf”. One such transaction involved the transfer of 300 BTC, valued at approximately $20.4 million. The second transaction involved the transfer of 100 BTC, valued at about $7.2 million.
An inactive Bitcoin wallet holding approximately 400 BTC (or around 27 million dollars at current value) has suddenly become active again, a period of 12.4 years having passed since it last saw action. This amount was equivalent to just over $2,000 USD when it was first stored in 2012!
— Whale Alert (@whale_alert) October 25, 2024
Consequently, the 400 BTC moved from an inactive wallet equates to approximately $27 million at today’s prices. Back in 2012, Bitcoin was valued at about $2,149 each, suggesting a possible gain of roughly $60 million if sold at current rates.
In 2012, when Bitcoin mining was still manageable, this collection, approximately worth $27.2 million, was produced. This could mean a potential earnings of around $27.1 million. The appearance of this ‘whale’ has sparked speculation about the possibility of other dormant Bitcoin holders hidden in the background. Such an action is typically seen as a precursor to market volatility, suggesting a surge of selling and heightened stress. It also underlines the volatile nature of the cryptocurrency market and its unpredictable influences.
Even though substantial transactions have taken place, the broader market reaction has been rather steady, as Bitcoin continues to trade at prices above $68,000. This stability implies that investors are adopting a cautious stance, preferring to observe more developments before making significant market moves, albeit with a hint of optimism.
As I write this, Bitcoin’s price is hovering at around $68,642, marking a 1.5% increase in the past day. Yet, surprisingly, the trading volume has dropped by 10.7% within that same period to approximately $30.4 billion. This downward trend in volume indicates a reluctance among investors to buy into Bitcoin, the leading cryptocurrency, at present.
What Bitcoin’s Technical Analysis Says
According to technical analysis, for Bitcoin to build up positive momentum, it needs to maintain closures above the current support level of approximately $68,000 in the upcoming days. If successful, Bitcoin’s next significant goal would be reaching around $72,000, which could potentially allow it to challenge its previous high reached earlier this year.
According to crypto expert ZAYK Charts, Bitcoin could surge by approximately 31% to reach $85,000 soon, due to its recent breakout from a bullish flag. Simultaneously, Microsoft Corporation (NASDAQ: MSFT) is considering investing in Bitcoin, with the decision likely to be made by shareholders in December.
Moreover, groups of Japanese financial and cryptocurrency companies are advocating for the acceptance of Bitcoin Exchange-Traded Funds (ETFs) by regulatory bodies. These coalitions argue that Bitcoin’s enduring stability and substantial market value could be advantageous for investors looking to enhance their asset portfolios over time.
Japanese investors see Bitcoin ETFs as a means to expand their investment horizons, given that they are now available to investors in countries like the U.S., Australia, and Hong Kong.
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2024-10-25 18:33