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Whale Wallet Comes Alive After Six Years, Moves $61 Million in Bitcoin
After six years of dormancy, the Whale Wallet springs to life, transferring a staggering $61 million worth of Bitcoin in a remarkable crypto comeback.
Out of the blue, a long-dormant whale wallet suddenly became active on Friday, transferring a significant amount of bitcoin to Coinbase amidst a slight decline in the leading cryptocurrency’s price after briefly touching $62,000.
The whale wallet, known as 12EMDoUhaNCuWZeeT6ey61AkjKyzmjV2m3, sent a whopping 1,000 BTC, valued at over $61 million, to Coinbase Pro. This stash of coins was originally purchased six years ago for just $6.68 million, indicating a substantial increase in value over time. In the crypto world, a whale wallet is defined as holding 1,000 BTC or more.
This quarter has witnessed a surge in previously inactive bitcoin wallets springing into action by moving assets to exchanges. Just a day before, a wallet linked to a bitcoin miner that had been untouched for 14 years came alive and transferred 50 BTC to Binance.
Experts suggest that these long-dormant holders may be seizing the opportunity to cash out as prices remain close to all-time highs or engaging in speculative trading in the derivatives market.
The combination of long-term holders selling off their assets, miners liquidating their holdings more rapidly, and the German government divesting its coin reserves has contributed to a nearly 9% decrease in bitcoin’s price this month.
Currently, bitcoin is trading at $61,550, struggling to sustain its position above $62,000 after multiple attempts since Tuesday.
Price volatility is expected to increase later today following the release of the Federal Reserve’s core Personal Consumption Expenditures (PCE) price index for May, which is a key measure of inflation. Economists predict no change in the PCE index and a slight 0.1% rise in the core PCE, resulting in a 2.6% annual increase in both headline and core figures.
If inflation remains benign, it could bolster the case for potential rate cuts by the Federal Reserve this year and provide a support level for bitcoin. However, some analysts believe that bitcoin could experience a further decline towards $50,000 in the near future.