On Nov. 16, 2022, at Bitcoin block height 763,474, someone transferred 6,522 bitcoins worth about $107 million after the coins had been dormant for more than five years. While the value of bitcoin is 75% lower than it was a year ago, so-called dormant bitcoins woke up during the recent cryptocurrency market capitulation.
As Bitcoin price remains 75% lower than a year ago, a batch of older Bitcoins are starting to move after years of inactivity
Five days ago, 3,500 bitcoins from 2011 were transferred for the first time in 11 years. Amidst the crypto market carnage associated with FTX, old coins woke up for some reason and moved to unfamiliar wallets. For example, the bitcoin address “1QBG9” moved 25 BTC at block height 762,719 from an address created on November 13, 2011.
Not long after, 50 2010 bitcoins were spent on November 14, 2022, after sitting idle for over a decade. The bitcoin address “1LB8B,” which moved 50 BTC at block height 763.149, was created on May 23, 2010. All three of these sightings were bitcoins stored in addresses that had been dormant for more than a decade.
6,522 Bitcoins worth over $107 million move after more than 5 years of sleep
Two days after the 2010 50 bitcoin move, BTC that stemmed from an address created on July 31, 2017, moved after being dormant for more than five years. While not very old, the btcparser.com blockchain parsers found that the individual or entity spends approximately 6,522.40 BTC.
The stash is worth more than $107 million using today’s BTC exchange rates. The “1LVBn” bitcoin address is also linked to nearly 10,000 BTC that was first accumulated in an address created on May 29, 2011. When the “1LVBn” bitcoin address was created on July 31, 2017, bitcoin was trading for $ 2,875 per unit according to statmuse.com metrics.
That means the 6,522 bitcoin cache was only worth about $18.7 million before it went to sleep for more than five years. If the 6,522 bitcoin stash had been sold today, the owner would have gained over 472%.
Were it the same owner who acquired approximately 9,478.77 BTC on May 29, 2011, the individual could have bought the bitcoins at $8.30 per unit. At that price in spring 2011, the person could have earned about 1.189% profit against the US dollar over 11 years.
The owner sends bitcoin caches with zero privacy techniques to 2 addresses
The funds, however, don’t appear to have been sent to an exchange, according to onchain data, as the 6,522 bitcoins now reside in two different addresses. Exchange address “1AkJq” contains 6,061.83 BTC and 460.57 BTC went to address “bc1qt”. The net send of 6,522 bitcoins remains idle at the time of writing.
Throughout the history of the 6,522 BTC spent on November 16, 2022, transactions have never been sent privately. Blockchair.com’s privacy tool gives the last change transaction, which moved 6,061.83 BTC, a privacy rating of “0” or “critical”.
Whenever the owner of these bitcoins moved coins, matched inputs and outputs were discovered making it easily identifiable by blockchain analysis. It is worth noting that the technical term “spent” and the use of the word “change” in this article does not necessarily mean that the bitcoins have been sold.
In fact, they could simply be transferred to alternative addresses by the same owner. It’s also worth noting that the bitcoins that originated from the wallet on May 29, 2011, which are also associated with the 6,522 BTC spent on November 16, 2022, may have seen ownership change on or off the blockchain.
The owner of the bitcoin address has not spent the corresponding bitcoin cash (BCH) associated with the bitcoin address “1LVBn”. 6,522.40 BCH remains in the address at the time of writing and the BCH is worth approximately $680,939 nominal.
What do you think of the 6,522 bitcoins that woke up after five years and three months? Let us know what you think about this topic in the comments section below.
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