10-year-old Bitcoin whales are active again

According to analysis website CryptoQuant, the amount of old Bitcoin entering the market spiked significantly when the BTC price dropped below $20,000.

Old whales awakening

It is not every day that wallets that have been inactive for 7 to 10 years move their Bitcoin again. It is not surprising that this happened today. Historically, we have seen a spike in legacy wallet activity more often when Bitcoin makes unexpected moves or breaks through key targets or support levels.

So it seems that even very long-term investors are now starting to get nervous and sell their crypto coins. You would expect it to be a very bad signal, but some analysts say that historically we are seeing a reversal upwards right now.

No reason to panic

According to blockdata, about 5000 10-year-old Bitcoins were recently moved. Despite the importance of the transaction, it is a relatively small transfer for such an old wallet.

Previously, very old wallets moved about a hundred thousand Bitcoins in a short time. That put enormous pressure on the market at the time, but even then there is little reason to panic, according to analysts. They say that these kinds of moves are almost never sales. During periods of high volatility, investors tend to split their holdings across different wallets in order to manage their assets more effectively.

But even if those funds are transferred for sale, such a large amount of coins would most likely go through an OTC trading desk instead of being dumped into the market.

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