Will BTC Dip Further? Dormant Bitcoin Active After 7 Years

Dormant Bitcoin News Updates: While Bitcoin (BTC) recently reached its two year low mark, several cryptocurrencies are also trading in the red. The FTX collapse has deteriorated the investor sentiment in an extreme bear market situation. Meanwhile, some whale addresses with dormant crypto holdings are quietly bringing alive their assets. Recent reports suggested that inactive whales moved around 2,000 BTC after a space of 11 years.

Also Read: FTX Reports $51 Billion Crash In Collateral, Sequoia Apologizes Investors

Whales In Action

In recent some of the other incidents of dormant addresses suddenly becoming active include transactions of Shiba Inu (SHIB) and Dogecoin (DOGE) besides Bitcoin transactions. In a latest development, on chain data suggests that as many as 10,000 BTC have just been transferred from an inactive wallet after a long time. As per CryptoQuant data, the huge Bitcoin transfer surprisingly came after being dormant for about 7 to years.

However, the transfer did not reflect in deposits in any exchange, indicating that the transfer was made to other addresses. This could also sound an alert to potential volatile effect if the BTC eventually reflects in exchanges.

“When Bitcoin, which has been asleep for 7-10 years, is transferred in large quantities, there is a high probability that the price of Bitcoin will decline.”

Meanwhile, BTC is trading lower than it did in November 2020. As of writing, BTC price stands at $16,540, up 4.86% in the last 24 hours, according to price tracking platform CoinMarketCap. Amid market speculation of the top cryptocurrency declining to the $10,000 level, BTC already reached $15,000 range earlier in the week.

Also Read: Bitcoin Will Be Worth $1 Million By This Date, Predicts Cathie Wood

Driving Factors

In the near term, the crypto market could potentially face more turbulence in the form of Genesis bankruptcy or deepened crisis around it. Meanwhile, it is also likely that Grayscale faces the risk of potentially liquidating its Bitcoin holdings due to the crisis surrounding the Digital Currency Group. Recently, Genesis reduced its target for fundraising to $500 million following failed efforts to raise $1 billion. The company’s liquidity issues could also lead to chances of insolvency, which could further weaken investor sentiment in cryptocurrencies.