A Bitcoin wallet that was inactive since 2013 recently saw a major transaction of Bitcoins. This is huge as investors are panicking that as 10k Bitcoins leave their wallet after 9 years, does this signal the Bitcoin top? This might very well be the scenario, or the wallet owner might just be transferring his coins to some other wallet.
What is all the fuss about this Bitcoin movement?
When such a huge movement of Bitcoin happens, and that too when the coins are these old, then it suggests that even the whales are not sure about the Bitcoin prices. It also indicates that we have already seen the top, and it’s time to sell. However, that might not be the only reason behind Bitcoin’s movement from the old wallet.
An analyst Maartunn says that the whale might be transferring their coins to multiple addresses and then to exchanges that do not need KYC. Since he mined them during a time when crypto regulations did not exist, he would not want to draw attention to his wealth now. At the same time, it will also mean paying a lot of tax. At today’s rate, 10k Bitcoins would be worth more than $200 million, and that also means millions in fees and taxes if the whale’s identity gets revealed.
Should you be bearish?
If you think about it from the perspective of the previous data, then yes, it is a bearish sign. There have been 6 such transactions previously, and all of the tops have predicted the top accurately. Here is an image shared by Philip Swift on Twitter on the same.
Now, if you think about it from a different angle, every time these transactions happened, the prices went down but went back up again as well. This means there is no need to panic and sell your holdings if you are thinking about it only from the perspective of this transaction.
In fact, many are also speculating that the funds are tied to the Mt Gox exchange, which went defunct. And the funds might be involved in the compensation of creditors.
What are your thoughts as 10k Bitcoins leave a wallet after 9 years signaling that it’s the top? Let us know in the comments below. Also, if you found our content informative, share it with your friends.
Also Read: SEC warns crypto investors about scammers exploiting their FOMO.