Bitcoin has recently been plagued by huge selling pressurewith different entities looking to divest their holdings. This time, network data shows a inactive Bitcoin wallet who transferred over $6.8 million worth of Bitcoin, suggesting that this whale may also be trying to sell his tokens.
Dormant Bitcoin Wallet Transfers Funds for the First Time in 12 Years
Data on the chain shows that a Bitcoin wallet (1Nxxi) that has been inactive for 12 years funds transferred for the first time on July 4. The wallet contained $6.8 million worth of Bitcoin, with all of those funds moved in two separate transactions. 76 BTC ($4.46 million) were initially sent from the wallet to an unknown address (3Ctd5), and 43 BTC ($2.46 million) were sent in the second transaction to the same unknown address.
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The last outflow from this address occurred in 2012, when 2.98 BTC were sent to an unknown address. These recent transactions have raised concerns for the crypto community because they suggest that the whale in question may be looking to offload their holdings. They also come at a time when Bitcoin is facing significant selling pressure.
As such, a sale of this magnitude could worsen The Problems of Bitcoin and lead to further declines for the leading crypto. However, on-chain data shows that the 119 BTC transferred are still intact at the unknown address (3Ctd5) they were sent to. This is undoubtedly a relief for the crypto community, as these tokens would have long ago been sent to an exchange if this whale was trying to offload his assets.
Meanwhile, Bitcoin still faces intense selling pressure from other entities, including the German government. On-chain analytics platform Arkham Intelligence revealed that the German government is selling up to $175 million worth of Bitcoin. In the last 24 hours, they have moved 1,300 BTC ($76 million) to Kraken, Bitstamp and Coinbase.
They also transferred 1,700 BTC ($99 million) to an unknown address (139Po). Arkham stated that the funds to this unknown address are likely deposits to an institutional or OTC service.
Gox begins refunds to creditors
Defunct Crypto Exchange Mt. Gox recently announced that it has begun payments to its creditors. The rehabilitation administrator as the crypto exchange has already made Bitcoin payments to some rehabilitation creditors through designated crypto exchanges.
This news is significant as it should accumulate more selling pressure in major crypto, with some of these creditors likely to liquidate their holdings after receiving repayment. Mt. Gox is expected to pay its creditors by $9 billion in cryptowith Bitcoin accounting for the majority of these tokens.
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At the time of writing, Bitcoin was trading around $54,300, down more than 7% in the past 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com