Bitcoin worth over $1.2 million remained dormant for more than 13 years has recently been transferred.
According to blockchain data, a large Bitcoin holder, commonly referred to as a “whale,” moved their holdings of 50 BTC to another wallet on Thursday.
The aforementioned Bitcoin was originally mined in June 2010 and remained inactive until its recent transfer.
Recently, previously inactive Bitcoin has been transferred, with an instance occurring in April where a holder who had not accessed their coins in a decade moved Bitcoin worth $7.8 million to new wallets.
Shortly after the aforementioned transfer, another investor or group of investors moved $11 million worth of Bitcoin, which had remained inactive for 11 years, further highlighting the trend of previously untouched Bitcoin being transferred.
Bitcoin “whales” are investors who accumulate significant amounts of the cryptocurrency and often hold onto it for extended periods. The identities of these investors, whether they are individuals, companies, or other entities, remain unclear based on blockchain data.
Kirill Kretov, a developer specializing in automated trading tools, suggested that Bitcoin mined during the 2009-2010 period was predominantly held by IT professionals. However, Kretov also noted that it is plausible that some commercial entity may have acquired these wallets from individuals in subsequent years, thereby maintaining the status of these addresses on the blockchain.
Research indicates that investors who hold onto their cryptocurrency for extended periods, commonly known as “HODLers,” tend to be the most successful. Conversely, inexperienced retail investors who engage in short-term buying and selling of cryptocurrency typically experience losses.
The reason for the success of long-term investors is attributed to the substantial increase in Bitcoin’s value over time, despite its volatility. It is noteworthy that a decade ago, the cryptocurrency was valued at less than $100 per coin.
For short-term investors, the current market conditions are unfavorable as Bitcoin’s value has significantly decreased. As per CoinGecko, the cryptocurrency is currently priced at $25,028 per coin, indicating a 3.7% decline in the past 24 hours and a nearly 7% decline in the past week. This trend has also affected other major altcoins like Ethereum and Cardano, which have experienced a plunge in value as investors evaluate the Federal Reserve’s recent decision to not increase interest rates.
Despite the recent decline in value, the largest cryptocurrency by market capitalization has experienced a remarkable increase of nearly 25,000% over the past decade. Therefore, the long-term hold strategy remains a successful approach for investors.
