According to blockchain data recorded by the analytics platform Arkham, a cryptocurrency wallet moved approximately 4,581.94 Bitcoin (BTC), valued at 377.6 million USD, to five different addresses on 12 October. The identity of the owner and the purpose of the transaction remain unknown.
The "whale"—a term for individuals or organizations holding large amounts of cryptocurrency—first acquired this Bitcoin in March 2020. At that time, the digital assets were worth about 40.8 million USD. More than one week later, during a sell-off triggered by the Covid-19 pandemic, Bitcoin's price dropped over 40%, falling below 4,000 USD.
Over the subsequent six years, these coins navigated significant market volatility, including the collapses of Terra, Celsius, and FTX in 2022. With this latest transaction, the value of the Bitcoin has reached approximately 377.6 million USD, nine times its value when it was first moved into the wallet.
Blockchain data shows the wallet had virtually no outgoing transfers for many years. The first recorded outgoing transaction occurred in August 2024, involving a small payment of 0.009 BTC.
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A person holding a symbolic Bitcoin coin. Photo: CNBC |
A person holding a symbolic Bitcoin coin. Photo: CNBC
The movement of a large amount of Bitcoin from a long-dormant wallet typically draws investor attention, as such a move could signal the owner is preparing to sell the assets. However, transferring coins to new addresses does not necessarily mean the Bitcoin has been sent to an exchange or is about to be sold.
According to Decrypt, the coins from the 12 October transaction were split among five new addresses and showed no further movement at the time of tracking. This could indicate an asset rearrangement or a shift to a different storage method, but blockchain data is insufficient to determine the true purpose.
One metric analysts use to monitor the activity of long-term Bitcoin holders is Coin Days Destroyed (CDD). This index considers the amount of Bitcoin transferred and the length of time those coins remained dormant before the transaction. When long-held coins begin to move in large volumes, the CDD can rise sharply, indicating a change in behavior among long-term holders.
Theoretically, a high CDD could reflect volatility risk or a potential trend reversal, as long-dormant cryptocurrency enters circulation. However, this index cannot independently confirm a sale, because internal transactions between wallets belonging to the same owner can also increase CDD.
One week prior, another Bitcoin wallet also transferred approximately 4,500 BTC, valued at nearly 376 million USD, after more than four years of inactivity. Recently, wallets believed to be linked to the US Government also moved Bitcoin worth at least 1.5 billion USD. It remains unclear whether these transactions are preparations for a sale or merely internal transfers between government-controlled wallets. These significant transactions cause the market to closely monitor the activities of whales, as they have the potential to impact supply and demand.
Tieu Gu (based on CoinDesk, The Block)
