The reactivation of long-dormant addresses usually causes bearish sentiment among market participants. It often suggests that holders are preparing to liquidate their assets, potentially flooding the market with significant amounts of Bitcoin and increasing selling pressure.
This month has seen a trend of decades-old wallets reawakening, with today’s event being part of a broader pattern. Recently, U.Today reported on another dormant address activation containing approximately $8 million worth of BTC. Additionally, two addresses holding over $2 million each were reactivated after long periods of dormancy last week.
These movements are particularly noteworthy given the current state of the crypto market. The Bitcoin price continues to quote at its lowest levels in months, recently hitting $54,300, a level not seen since late April.
In a recent case, the unknown whale, after 13 years of inactivity, transferred 1.949 BTC, equivalent to $111,450, to a new address, labeled “bc1q6p.” Another 1 BTC was sent to another new address, “3J4Ng.” It is anticipated that the investor will further distribute his Bitcoin savings through these new addresses.
The whale’s use of different Bitcoin address formats is also of interest. Traditional addresses start with “1,” multisignature addresses start with “3” and SegWit addresses begin with “bc1.” These formats offer varying levels of security and transaction efficiency.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
