Massive Dormant Bitcoin Whale Awakens After 6 Years: Details

U.Today - Bitcoin (BTC) is experiencing market volatility as the asset battles to breach and stay above the $95,000 resistance level. Amid this price fluctuation, a Bitcoin whale has hit a massive valuation level after spending six years in hibernation.

Whale activity sparks market speculationAccording to an X post from Lookonchain, the whale’s wallet suddenly became active as the user deposited 500 BTC worth $46.87 million into Coinbase (NASDAQ:COIN ) Prime.

Although the intention of this massive deposit is currently unknown, it usually signals potential intent to sell. This speculation sounds plausible given the asset's value as of when the whale made the purchase.

Six years ago, Bitcoin's average price was $7,000. That is, the entire 500 BTC was accumulated at about $3,500,000. The whale’s holding has now made a staggering profit and is worth over $47 million at the current market value.

As of this writing, the BTC price changed hands at $94,404.63. However, using a marked-down price of $94,400 gives a value of $47,200,000. This gives a profit margin of $43,700,000 should the whale decide to sell off the total holdings.

Analysts speculate that since Bitcoin has entered its distribution phase, the whale might have decided to sell off this 500 BTC. The whale might think of raising profits for possible reinvestment in other ventures while likely just liquidating.

Market implications and stakeholders' perspectiveDespite the broader market price fluctuation, some stakeholders still believe Bitcoin will rebound massively.

Certified NBA legend Scottie Pippen insists that the current price movement is a bear trap artificially created to lure investors into selling. Pippen believes that BTC will soar after most people dump it on the market. Thus, he advised his followers not to sell.

Whatever the reason the 500 BTC whale stirred, market watchers will track his next moves to see if selling is part of it. A large holder with 357 BTC also became active after 11 years — just before the end of December 2024.

Source: Investing.com