Galaxy Research The latest data shows that Bitcoin held for over 10 years without any activity is being transferred more frequently now. Although this year has not yet ended, the activity level of this portion of older coins in the annual statistics is already higher than in most previous years.
In late August, there were multiple transfers from old wallets.
Galaxy statistics show that between August 16th and 26th, 6 wallets that had been inactive for a long time since 2011, 2012, and 2014 transferred a total of 553.59 BTC, which is estimated to be about 40.15 million US dollars at the price mentioned in the text.
Among them, a wallet that had not been used since August 2012 transferred out 212 BTC, worth approximately 13.66 million US dollars. Another wallet that had been inactive since June 2011 transferred out 10.74 BTC, amounting to about 692,000 US dollars. There was also a transfer of 40 BTC; the last time the related assets were moved was in May 2012, after which they were directed to a German custodian bank Boerse Stuttgart Digital.
On-chain activity does not necessarily equate to selling off.
The reason why the transfer of such older coins has attracted attention is that there are not many remaining Bitcoin early holders who can still control their private keys. Every time an old wallet comes back into use, it is seen by the market as a potential signal of new circulating coins.
However, it is usually not possible to determine from the on-chain data alone whether these bitcoins have been sold. It is also possible that they have merely been re-housed in different custodians, transferred to professional institutions, or that address consolidation has taken place. The report mentions that recently, a significant amount of funds have flowed towards professional infrastructure rather than directly entering the public market.
Two events may drive the movement of older coins.
- Some wallets carry the “Salomon Client Dusted” tag, which is related to a lawsuit in New York.
- The case attempts to classify approximately 39,000 long-dormant addresses as unclaimed property.
- Since the judge suspended the case in June, the wallets that were identified have started to move more frequently.
In addition, the Coldcard hardware wallet vulnerability incident may also have an impact. Reports indicate that after the incident, approximately 233,000 BTC were transferred out of long-term holding wallets, and some holders switched to new storage solutions due to security concerns.
Bitcoin under short-term pressure, but funds for ETF are still flowing in.
As there were unusual movements in older cryptocurrencies, the volatility in the Bitcoin market increased. Reports indicate that Bitcoin fell to $76,877 on Friday, losing a significant portion of its gains from the previous week.
One of the triggering factors was the hawkish speech by Federal Reserve Chairman Kevin Warsh at the Jackson Hole Symposium, where he stated that the pace of inflation decline was still not fast enough. CME FedWatch data shows that market expectations for a rate hike in September have risen from 35% the previous day to about 56%.
However, there is still support in terms of medium-term funding. US spot Bitcoin ETF has seen net inflows for 8 consecutive trading days as of last Wednesday, attracting a total of $2.8 billion, which is the longest period of inflows since April. The report also mentioned that traders predicting the market Myriad currently tend to expect Bitcoin to continue to rise towards $84,000 rather than fall back to $55,000.
