Ancient Bitcoin Whales Transfer 14K BTC After Seven Years, What’s Going On?

As investors show mixed signals, vast amounts of dormant Bitcoin (BTC) have moved after seven years at the earliest. The initial reaction from the market was neutral before hourly trading data showed bearish sentiments and a subsequent price fall. At the time of writing, Bitcoin trades at $95,692, a 1.3% decline in the last 24 hours, extending weekly outflows above 5%. This nosedive was reflected in the total digital asset market cap, now at $3.15 trillion.

Whales Moved Dormant 14K BTC

A CryptoQuant report shows the movement of dormant Bitcoin to new addresses. Over 14,000 BTC idle for seven to ten years were transferred, sending prices downward. On Feb 10, Bitcoin traded sideways but maintained its stance above $96k before subsequent movements from large-scale holders.

However, as widely anticipated, the assets have not been transferred to centralized exchanges. Asset flows to centralized engagement point to a potential sale, leaving many investors in unstable positions. Even though the assets were not moved to exchanges, historically, these actions have led to heightened sell pressures.

“Despite the large volume, these coins have not been transferred to any exchanges, suggesting that they are not intended for immediate sale. This kind of movement does not necessarily mean that Bitcoin’s price will drop. In the past, similar cases have occurred, but they did not always lead to a price decline. It would be wise to review historical data on Bitcoin’s price movements following such events.”

Bitcoin Price Growth Fuels Profit-Taking

This is due to price changes over the years as whales might look towards profit-taking. In the last decade, Bitcoin price has outpaced other top assets after soaring to a $2 trillion market cap. Most holders purchased the asset under $20k, and with the price above $94k, movements of ancient holdings often lead to sales.

Another important reason this comes now is to prevent assets from plunging below the $90k before a sale. The drop in previous weeks from an all-time high above $107k to trading below $96k can spur ancient holders to sell now to maximize profits. However, prospects abound for the crypto market leader with the rising adoption of digital assets. On the institutional front, spot Bitcoin ETFs continue to attract investment, igniting positive sentiments.