Bitcoin wallets, dormant for 11 years, transfer $60 million

Long-dormant Bitcoin wallets that have been inactive for almost 11 years suddenly transferred 1,000 Bitcoins (BTC) within a 20-minute window, on-chain analysts reported Sunday.

Lookonchain, an analytical tool that provides insights into blockchain activity, noticed that two wallets (16vRqA and 1DUJuH) initially received 500 BTC in September 2013.

At the time, Bitcoin was trading at a modest $124 per coin. Fast forward to today, these once trivial transactions have turned into a major windfall.

The coins, which are worth approximately $60.9 million at the current BTC price, correspond to a staggering profit margin of 49,274.2%.

2 wallets that have been dormant for 10.7 years transferred all 1000 $BTC($60.9 million) sold out in the last 20 minutes.

Wallet “16vRqA” received 500 $BTC($62k at the time) On September 13, 2013, the price was $124.

Wallet”1DUJuH” received 500 $BTC($62k at the time) On September 12, 2013… pic.twitter.com/l5ivjrcRt5

— Lookonchain (@lookonchain) May 12, 2024

The sudden resurgence of activity in these dormant wallets has set tongues wagging in the crypto community and led to intense speculation about the reasons behind these unexpected transactions.

Given the long period of inactivity, many questions arise about the identities and intentions of the wallet owners, and some members of the crypto community are wondering whether the funds are part of the Silk Road stash held by the US government.

I wonder if this is the silk road money captured by the USA?

— Ryzoblue (rtrd/acc) (@RyzoBlue) May 12, 2024

Others jokingly speculated whether mysterious Bitcoin inventor Satoshi Nakamoto had returned to cash out his holdings, said to be millions of coins.

Satoshi Nakamoto comes back to life to sell his assets 😅😛

— Crypto Craze (@Cryptocraze777) May 12, 2024

The market closely monitors movements in legacy wallets because they often contain large amounts of Bitcoin, which can affect market dynamics when sold on the open market.

Moreover, crypto market watchers have historically viewed the emergence of long-dormant Bitcoin holders as a bearish signal, potentially heralding a selloff to capitalize on profits.

However, despite the significant profit margins, the owners of the two wallets chose not to cash out through exchanges but instead transferred their assets to undisclosed wallets, adding another layer of intrigue to their cause.

Most Satoshi-era Bitcoin adopters seem to hold on to their coins through various market cycles; More than 1.8 million Bitcoins are often labeled as “lost” because the wallets where they are held have shown no activity in the intervening years.

However, the resurgence of these long-dormant addresses underscores the persistent value and long-term holding strategies within the Bitcoin community.