A Bitcoin whale from the Satoshi era, dormant for over 14 years, has moved a second large tranche of Bitcoin, igniting speculation within the cryptocurrency market. On Thursday, the whale transferred 40,192 BTC, valued at approximately $4.77 billion, to a new wallet. This follows an earlier transfer of 40,009 BTC to Galaxy Digital, a well-known digital asset management firm. In total, the whale has moved 80,201 BTC, worth around $9.54 billion.
The movement of such a significant amount of Bitcoin has understandably triggered discussions about the whale's intentions. Some analysts suggest the transfers could indicate an impending sell-off, potentially impacting Bitcoin's price. Indeed, following the initial transfer to Galaxy Digital, 6,000 BTC was subsequently moved to the centralized exchanges Binance and Bybit, further fueling speculation of a potential sale. This selling activity may have contributed to Bitcoin's recent price correction, with the cryptocurrency retracing from a new all-time high of $123,200 to around $116,000.
However, other experts caution against jumping to conclusions. Rajiv Sawhney, Head of International Portfolio Management at Wave Digital Assets International, posited that the whale's movements might be a strategic maneuver to obscure their intentions and prepare for future deals. Transferring funds to a centralized exchange like Galaxy Digital can provide opacity, as the activity becomes harder to track within the exchange's omnibus account. This allows the whale to negotiate with market makers and offload large amounts of Bitcoin discreetly, without alarming the broader market. Galaxy Digital offers services that facilitate this type of large-scale market maker activity. It's also possible the whale intends to use Galaxy Digital for asset management purposes, such as earning yield on their substantial Bitcoin holdings.
The whale's activity first came to light in early July when Lookonchain, a blockchain analytics service, noticed the movement of funds after 14 years of dormancy. The whale's addresses had received 20,000 BTC on April 2, 2011, when Bitcoin was trading at a mere $0.78, and another 60,009 BTC on May 4, 2011, when Bitcoin was worth $3.37. This means the whale's initial investment of approximately $220,000 has grown to an astounding $9.5 billion. The timing of the original Bitcoin acquisition is noteworthy, coinciding with the period when Satoshi Nakamoto, Bitcoin's pseudonymous creator, made his last known communications.
Regardless of the whale's ultimate intentions, the movement of such a large amount of Bitcoin is a significant event in the cryptocurrency world. It highlights the influence that early adopters and large holders can have on the market, and it underscores the importance of closely monitoring on-chain activity for potential market signals.
