CoinDesk Report:
Over the past week, more than $1 billion worth of Bitcoin has been sent to exchanges. At the time of writing, the cryptocurrency has seen a slight rebound after dropping below $55,000.
Recently, there has been a significant influx of Bitcoin into exchanges. This comes at a challenging time for the world’s largest cryptocurrency, marking one of its most severe declines in recent months. Needless to say, this has impacted cryptocurrency holders, including whales.
Indeed, a whale that has been dormant for over a decade has now transferred all its holdings.
Recent data from Glassnode shows a notable increase in the amount of Bitcoin moving to exchanges. Analysis by AMBCrypto of this data reveals that between July 1st and 5th, over 9,500 BTC entered exchanges, valued at approximately $540 million at current prices.
Expanding this timeframe to the past week reveals an even larger transfer, with over 21,000 BTC moved, equivalent to more than $1 billion. This surge in inflows may indicate preparedness for selling, potentially exerting downward pressure on Bitcoin’s price in the short term.
Revival of decade-old Bitcoin wallets
That’s not all; LookIntoBitcoin detected significant activity involving a wallet dormant for over a decade. This wallet recently transferred its entire contents, totaling 1,004.5 BTC. Analysis indicates these coins were acquired in 2014 at an average price of $735 per coin, amounting to approximately $738,000 in total value at the time. Given Bitcoin’s current market price, these coins are now valued at around $57 million.
This substantial increase underscores Bitcoin’s significant appreciation over the years and highlights the potential impact of such large, unexpected transactions on market dynamics.
Further Bitcoin movements
Several significant Bitcoin transactions affecting market dynamics occurred this week. Mt. Gox conducted a test transaction involving over 1,000 BTC as part of its preparations to repay creditors.
Additionally, the defunct exchange moved over 42,000 BTC from wallets that had been inactive for over a decade, valued at over $2 billion. Furthermore, the German government transferred over 4,000 BTC to exchanges. These large-scale movements from important and previously dormant holders contribute to increased market liquidity on the sell side.
Moreover, such activities may lead to increased selling pressure. With a sudden increase in available supply on the market, this could potentially impact prices, pushing them downwards.
Bitcoin’s challenging rebound
According to AMBCrypto’s analysis of Bitcoin’s daily time frame, Bitcoin appears to be struggling to stabilize amid continued declines. The positioning of the RSI and moving averages also emphasizes this point.
Read more: Bitcoin (BTC) Price Forecast 2024-25
At the time of writing, the cryptocurrency is trading around $56,600, fluctuating between slight gains and losses.