Arkham Intelligence, a crypto tracker, has detected a massive movement of dormant bitcoin worth $2 billion. The bitcoin had not moved since 2019, and only once since 2013. The movement coincides with the launch of spot bitcoin ETFs in the U.S. market, which have attracted record trading volumes.
Whales On The Move
Bitcoin, the leading cryptocurrency by market capitalization, has seen a significant movement of dormant coins worth $2 billion. According to Arkham Intelligence, a crypto tracker that monitors the activity of bitcoin addresses, nearly 50,000 bitcoin tokens that had not moved since 2019, and only once since 2013, were transferred on Jan. 18, 2024. The bitcoin was consolidated from 49 addresses into five new addresses, each holding around 10,000 bitcoin.
Coincides With Spot Bitcoin ETF Approval
The movement of the dormant bitcoin coincides with the launch of spot bitcoin exchange-traded funds (ETFs) in the U.S. market, which have attracted record trading volumes and inflows. Spot bitcoin ETFs are investment products that track the price of bitcoin and trade on stock exchanges, allowing investors to gain exposure to the cryptocurrency without having to buy or store it directly. The U.S. Securities and Exchange Commission (SEC) approved 11 spot bitcoin ETFs on Jan. 10, 2024, following the success of similar products in Canada and Europe.
Why Are The Whales Moving?
The reactivation of the dormant bitcoin wallet has sparked speculation and curiosity among the crypto community, as the origin and purpose of the movement remain unknown. Some have suggested that the bitcoin belongs to a Satoshi-era whale, a term used to describe an early adopter of bitcoin who amassed a large amount of coins during the initial years of the network, when the cryptocurrency was worth a fraction of its current value. Others have proposed that the movement is related to the increased demand and liquidity for bitcoin in the wake of the ETFs launch.
Observing Something Afoot
Arkham Intelligence, the source of the data shared by Bitcoin Archive, stated that the movement of the dormant bitcoin is a rare and significant event, as it represents a large portion of the total supply of bitcoin, which is capped at 21 million. The crypto tracker also noted that the movement occurred just before the U.S. market opened, suggesting a possible correlation with the ETFs trading activity. Arkham Intelligence said that it will continue to monitor the situation and provide updates on its social media platform, X.