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The transfer of a sizable Bitcoin stockpile that had not been touched for almost ten years has sparked interest among cryptocurrency enthusiasts. According to blockchain analytics company CryptoQuant, 14,000 Bitcoin, or roughly $1.35 billion, was transferred early on Monday.
Despite the significant transfer, CryptoQuant noted that the Bitcoin did not end up on exchanges, indicating that an immediate sale is unlikely. “On February 10th, 14,000 Bitcoins that had been inactive for 7 to 10 years were moved. Despite the large volume, these coins have not been transferred to any exchanges, suggesting that they are not intended for immediate sale,” the firm stated.
Historically, movements of long-dormant Bitcoin have not always triggered a price drop. CryptoQuant suggests reviewing past data to understand how similar cases impacted market trends. “This kind of movement does not necessarily mean that Bitcoin’s price will drop. In the past, similar cases have occurred, but they did not always lead to a price decline. It would be wise to review historical data on Bitcoin’s price movements following such events (refer to the second indicator),” the firm explained.
However, the firm also pointed out that the original purchase price of these coins was significantly lower than current market value, which could influence future selling decisions. “It’s important to note that the average acquisition price of these coins is quite low, which could influence the holders’ future decisions regarding potential sales,” CryptoQuant added.
Meanwhile, CryptoQuant CEO Ki Young Ju remains optimistic about Bitcoin’s current market cycle. He believes the bull run has more room to grow, driven by continued demand from institutional investors and Bitcoin exchange-traded funds (ETFs).
“The Bitcoin bull cycle isn’t over. The buying engine for paper Bitcoins is still running. In 2021, the downturn came two months after GBTC (Grayscale Bitcoin Trust) inflows dried up. No need to rush calling the cyclical top until ETFs, MSTR (MicroStrategy), and institutional buying slow down,” he stated.
With Bitcoin’s movement sparking speculation, all eyes remain on how these long-held assets will be utilized in the coming months.