In a surprising move, a dormant Bitcoin address containing 1,005 BTC has been activated after lying untouched for over 12 years. The transaction transferred more than $29 million worth of BTC. The address is speculated to belong to a miner who was active in 2010. Despite this significant movement, the price of Bitcoin remains relatively stagnant above $29k.

According to Whale Alert, a blockchain tracker and analytics system, the activation of dormant Bitcoin addresses often raises speculation about the intentions of the holder. Traders may become fearful of a major sell-off when large transfers like this occur. In this particular case, the wallet remained inactive for nearly 13 years before the coins were moved.

The dormant address, which was recently activated, contains 1,005 BTC, valued at approximately $29,750,772 at current prices. Whale Alert shared the details of the event on Twitter, stating that the wallet had been inactive for 12.8 years.

An analyst commenting on the whale’s actions believes that the address likely belongs to an early miner. Analysis of the mempool reveals that the individual was actively mining Bitcoin in 2010.

Bitcoin Price Outlook

Bitcoin has been struggling to break through the $30,000 level in recent weeks, despite support near $29,000. Technical indicators suggest a potential downward trend, with bears targeting the range of $28,000-$28,500. The price action of BTC has formed a downtrend line on the weekly chart, although there have been attempts to move higher. The $25,000 zone is seen as a critical support level.

FAQs

1. What is a dormant Bitcoin address?

A dormant Bitcoin address refers to a Bitcoin wallet that has remained inactive and has not been involved in any transactions for a significant period of time. In this case, the address had been dormant for nearly 13 years.

2. What does it mean when a dormant Bitcoin address is activated?

When a dormant Bitcoin address is activated, it means that the wallet holder has initiated a transaction, such as sending or receiving Bitcoin. This activity often raises speculation among traders and observers about the intentions of the holder.

3. Why do whale transactions cause concern among traders?

Whale transactions, which involve large transfers of cryptocurrencies like Bitcoin, often cause concern among traders because they can potentially have a significant impact on the market. Traders may fear that a major sell-off, known as a dump, will occur, leading to a decrease in the price of the cryptocurrency.