A massive Bitcoin consolidation spurt creates sell-side liquidity risk
CryptoQuant founder and CEO Ki Young Ju believes that the movement and integration of 2,000 bitcoins (BTC) into a single wallet by an unknown individual or entity shows a “reawakening of the sell-side liquidity problem of old bitcoin.”
Young Ju's pattern of transactions indicated that the coins were sold through OTC. A sell-side liquidity crisis refers to a situation where there is a shortage of assets in the market, causing difficulty for sellers to find buyers or execute transactions at desired prices. This can lead to increased volatility and price fluctuations.
In the year An unknown individual or entity who received 2,000 bitcoins in mining rewards in 2010 merged them into one wallet.
The transaction took place on March 26, according to developer Mononautical, X, which merged 40 mining rewards containing 50 bitcoins each into one wallet.
Bitcoin miners are paid to verify blocks on the Bitcoin network. Initially, each block awarded 50 bitcoins. However, in approximately four years, this award will be cut in half.
The upcoming Bitcoin halving will reduce rewards from 6.25 BTC to 3.125 BTC. It is expected around April 21st, but this date is subject to change.
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When this unknown party mined these blocks, the Bitcoin rewards were estimated at around $600. Now, they are worth about $140 million, according to Cointelegraph's price index page. Monotonic Note:-
Imagine rocketing from a few hundred dollars to $140 million over 14 years.
Over the weekend, there was another significant Bitcoin transfer. The fifth-richest bitcoin address moved $6 billion worth of bitcoins to three separate addresses. According to data from blockchain analytics firm Arkham, the address was funded with 94,500 bitcoins in 2019.
This Bitcoin sat dormant until the weekend when it was distributed and sent to the new addresses, leaving only 1.4 Bitcoin ($99,000).
In January, an individual transferred 26.9 bitcoins (worth an estimated $1.2 million) from what appeared to be Binance to the Bitcoin network's Genesis wallet, where it could not be retrieved.
The Genesis wallet was the first wallet on the Bitcoin network developed by Satoshi Nakamoto, the creator of the Bitcoin simulator.
In the year In July 2023, a dormant bitcoin wallet containing over 1,037 bitcoins (worth over $31 million) suddenly awoke after 11 years of slumber and withdrew the entire stash.
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