Two Bitcoin wallets that had been inactive for a long time were reactivated today. These wallets hold a total of 20,000 BTC, which is worth over $2 billion at current prices.
These wallets transferred their balance to new addresses, raising concerns about long-term holders surrendering.
Two Bitcoin Wallets Move $2 Billion
Beincrypto had previously reported. The on-chain analysis platform Lookonchain confirmed the source of one transfer. These wallets were created on April 3, 2011, when BTC was trading at $0.78.
At the time, the owner acquired 10,000 BTC for less than $7,805. This wallet remained inactive for over 14 years before its entire balance was moved to a new address early on July 4.
Lookonchain also discovered a second wallet from 2011. This wallet had a similar balance of 10,000 BTC and showed identical movement. Historically, such movements have occurred before long-term holders' sales. Today, this triggered a swift and cautious response from market participants.
Bitcoin Market Reaction
Many traders anticipated potential whale liquidation and reduced activity. This increasing hesitation was reflected in BTC's trading volume, which decreased by 15% in the last 24 hours to $46 billion.
The decrease in trading volume and price indicates weakening market confidence. In such cases, sellers are dominant. This dynamic could set the stage for further BTC decline. Low volume means less liquidity, making prices more sensitive to large sell orders.
Moreover, BTC's price dropped by about 1% amid declining volume. However, this decline occurred alongside an increase in futures open interest (OI), suggesting traders are still making leveraged bets despite reduced participation in the spot market.
At the time of reporting, this reached $76 billion, increasing by 1% over the past day.
The increase in OI during low volume and price decline particularly suggests speculative positioning from short-sellers anticipating further decline. This setup increases market vulnerability. Increased price volatility raises the likelihood of liquidations.
This setup means even small BTC price movements could trigger significant stop-losses or margin calls, increasing downward pressure on the coin's price.
Bitcoin Price Maintains Balance
At the time of reporting, BTC was trading at $108,978, just below its recent high. However, the market remains tense after 20,000 BTC moved from whale wallets today.
If a significant portion of these coins are deposited into exchanges for sale, this could intensify downward pressure and push Bitcoin's price to $106,295.
Conversely, if whales choose to hold and the overall market sentiment turns bullish, the coin could find new upward momentum. A decisive breakthrough above $109,267 could pave the way for a rise to $110,422.
