In a historic event described as the largest movement of coins over 10 years old in Bitcoin's history, a long-dormant whale wallet transferred 80,000 BTC on Friday.
This historic transaction recorded the largest movement of old coins in 8 years, causing ripples in the cryptocurrency market and reigniting concerns about selling pressure from long-term holders.
Bitcoin Market Shocked by Initial Miner's $8.6 Billion BTC Movement
A long-dormant BTC whale, believed to be an early miner, shook the cryptocurrency market on Friday. This entity transferred 80,000 BTC, equivalent to approximately $8.6 billion, in four transactions of 10,000 BTC each.
According to Arkham Intelligence, these coins, untouched for over 14 years, began moving early Friday morning and were completely transferred to a new address by 15:00 UTC. This is being called one of the largest single daily movements of coins over 10 years old in BTC history.
This entity currently holds 161,326 BTC worth over $17.4 billion. 80,000 BTC have been moved, with 120,326 BTC still remaining in the whale's wallet.
$110,000 Liquidity... A Rebound Signal?
Such movement of long-held coins is typically considered a bearish signal. The transfer triggered a selling wave across the BTC market, causing Bitcoin to close around the $107,000 price range on Friday.
Attempting to recover from the bearish impact, the coin is trading at $108,196, down 1% over the past 24 hours.
However, despite short-term bearish pressure, on-chain data suggests that a strong uptrend is still maintained. According to Coinglass, BTC's liquidation heatmap shows a liquidity cluster concentrated around the $110,567 price level.
The liquidation heatmap is a tool that identifies price levels with a high probability of mass leverage position liquidations. This map highlights high-liquidity areas, often distinguished by color to indicate intensity, with brighter areas representing higher liquidation possibilities.
These liquidity areas act like magnets for price movements, with the market naturally moving to execute stop orders and open new positions.
For BTC, the liquidity cluster at $110,567 indicates strong trader interest in buying or covering short positions at that price. This setup could facilitate a short-term rally if there is upward momentum that overwhelms selling pressure in the spot market.
Futures Traders Remain Strong
BTC's funding rate remains positive despite recent whale activity. At the time of reporting, it stands at 0.006%, indicating that futures traders are still maintaining an uptrend and holding long positions.
The funding rate is a periodic payment exchanged between traders in perpetual futures markets, designed to align contract prices with the spot market. When the funding rate is positive, traders holding long positions pay those with short positions, indicating a bullish market.
Conversely, a negative funding rate means short positions pay long positions, reflecting increased bearish sentiment and price decline expectations.
For BTC, the consistent positive funding rate even after the large movement of long-dormant coins suggests that traders remain confident in the asset's long-term strength.
BTC Consolidating After Whale Movement... Next Target $110,000?
While the awakening of the dormant market surprised some traders and triggered selling, the indicators evaluated above still show that the BTC market is absorbing the bearish pressure from the supply surge. Many traders are still positioning for further increases, indicating no complete shift in sentiment.
If this bullish sentiment is maintained, the coin could recover strength and rally to $109,267. Breaking this level could trigger a rise to $110,442.
However, if selling pressure intensifies, Bitcoin's price could drop to $106,259. With stronger bearish momentum, the price could fall further to $103,952.
