Bitcoin (BTC) has finally managed to successfully rebound past $64,000 today. Amid the price recovery, a dormant wallet dating back over a decade came to life. Moreover, the dormant Bitcoin whale transferred their entire BTC reserve, which was worth nearly $44 million.
Dormant Bitcoin Whale Makes Massive Transfer
According to Lookonchain, a blockchain tracking platform, an inactive Bitcoin whale recently transferred a staggering 687.33 BTC to two unknown wallets on Monday. The transactions were worth a whopping $43.94 million in total. One transaction accounted for a transfer of 625.42 BTC, valued at $41 million.
Whilst, the other transaction shifted 61.9 BTC, equivalent to about $4 million at the time. The whale, inactive for 10.3 years, initially received this hefty sum of Bitcoin on January 12, 2014, when the cryptocurrency was valued at $917 per coin. At the time, the whale’s BTC reserve was worth only $630,000. This indicates a gigantic profit of 6,875%.
However, this transfer also raises concerns about a possible selloff. The sudden transfer could have been made with the intention to offload the massive Bitcoin reserve amid the latest price rebound. Moreover, the Bitcoin whale’s profit is huge, which strengthens the possibility of a dump.
If such a selloff is carried out, it could potentially affect the Bitcoin price in a negative manner amid the recovery. Furthermore, a decline or sideways action could ensue, offering an opportunity to Bitcoin bears. In addition, shorts are trying to limit their losses while preparing for a short squeeze, which could add further volatility.
Also Read: Bitcoin Price Analysis: End-of-Correction Pattern Hints $BTC Rally to $73k in May
BTC Price Tops $64,000
After several attempts to sustain the $64,000 level, Bitcoin has finally succeeded. As of writing, the BTC price was up 1.06% to $64,296.60 on Monday, May 6. Meanwhile, the crypto boasted a massive market capitalization of $1.26 trillion. On the contrary, the 24-hour trading volume for Bitcoin plummeted 7.49% to $18.27 billion.
As BTC bounced back with substantial gains, shorts accounted for nearly 95% of total liquidations, according to Coinglass. However, the liquidations weren’t as significant as witnessed in recent days. Hence, the impact of the short squeeze could be limited but a rise in BTC’s value might be noted owing to the sudden buying pressure from shorts.
Currently, the Bitcoin price is trading fairly above the 50-day and 100-day EMAs of 63,927 and 60,191, according to Trading View. This suggests that the BTC price trajectory is bullish in the short and long-term. Nonetheless, the possibility of minor corrections isn’t ruled out.
Also Read: Bitcoin Blockchain Processes One-Billionth Transaction, Next Billion Coming Soon
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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