CryptoQuant’s founder and CEO, Ki Young Ju, believes that the consolidation of 2,000 Bitcoin by an unidentified individual or entity into a single wallet indicates a “sell-side liquidity crisis” that is impacting the Bitcoin market. Young Ju noted that the pattern of the transactions suggests that the coins were sold over-the-counter (OTC). A sell-side liquidity crisis refers to a situation where there is a shortage of available assets in the market, making it difficult for sellers to find buyers or execute trades at desired prices. This can lead to increased volatility and price fluctuations.
According to developer Mononautical, an unidentified individual or entity who received 2,000 Bitcoin in mining rewards in 2010 consolidated them into a single wallet. The transaction took place on March 26 and involved consolidating 40 batches of mining rewards, each consisting of 50 Bitcoin, into one wallet.
Bitcoin miners are rewarded for verifying blocks on the Bitcoin network, initially receiving 50 Bitcoin per block. However, this reward is halved approximately every four years. The upcoming Bitcoin halving is expected to decrease block rewards from 6.25 BTC to 3.125 BTC. While it is anticipated to occur around April 21, the date may change.
The Bitcoin rewards, which were valued at around $600 when the unknown entity mined the blocks, are now worth nearly $140 million, according to Cointelegraph’s price index page. Mononautical also reported another significant Bitcoin transfer over the weekend, where the fifth-wealthiest Bitcoin address moved $6 billion worth of Bitcoin to three different addresses. The address had been funded with 94,500 Bitcoin in 2019 and remained untouched until the recent transfer.
In January, an individual transferred 26.9 Bitcoin (valued at $1.2 million at the time) from what appeared to be Binance to the Bitcoin network’s genesis wallet, where retrieval is impossible. The genesis wallet is the first-ever wallet on the Bitcoin network, created by Satoshi Nakamoto, the pseudonymous creator of Bitcoin.
In July 2023, a dormant Bitcoin wallet holding over 1,037 Bitcoin (worth $31 million at the time) suddenly became active after 11 years, transferring out the entire stash.
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