Bitcoin (BTC) has effectively rebounded past $64,000 today. A wallet that had been idle for more than ten years returned to life during the price rebound. The inactive Bitcoin whale also moved their BTC reserve, approximately $44 million.
Dormant Bitcoin Whale Makes Massive Transfer
A blockchain tracking website called Lookonchain reports that an inactive Bitcoin whale moved an astounding 687.33 BTC to two unidentified wallets on Monday. The total value of the trades was an incredible $43.94 million. $625.42 BTC, or $41 million, was transferred in a single transaction.
The other transaction shifted 61.9 BTC, equivalent to nearly $4 million at the time. The whale, inactive for 10.3 years, initially received this hefty sum of Bitcoin on January 12, 2014, when the cryptocurrency was valued at $917 per coin. The whale’s BTC reserve was barely $630,000 at the moment. This suggests a whopping 6,875% profit.
But given this transfer, there’s also reason to be concerned about a potential selloff. The abrupt move may have been undertaken to sell the sizable Bitcoin reserve amid the most recent price increase. Moreover, the Bitcoin whale’s profit is enormous, strengthening the possibility of a dump.
Should such a selloff occur, it might have a detrimental impact on the price of Bitcoin during the rebound. Moreover, a downturn or sideways movement can follow, providing a chance for Bitcoin bears. Furthermore, short sellers attempt to control their losses in anticipation of a short squeeze, which may increase volatility.
BTC Value Exceeds $64,000
Bitcoin has finally managed to hold the $64,000 mark after multiple attempts. On Monday, May 6, the price of Bitcoin was up 1.06% to $64,296.60 at the time of writing. The cryptocurrency, meanwhile, boasted a massive $1.26 trillion market capitalization. Conversely, Bitcoin’s 24-hour trading volume fell 7.49% to $18.27 billion.
According to Coinglass, shorts made up about 95% of all liquidations, and Bitcoin recovered significantly. However, the liquidations were less significant than witnessed in recent days. As a result, the short squeeze’s effects may be mitigated. Still, the abrupt purchasing pressure from short sellers may cause the value of bitcoin to surge.
According to Trading View, the 50-day and 100-day EMAs of 63,927 and 60,191 are currently being fairly traded above the price of Bitcoin. This shows that the BTC price trend is positive in the short and long term. Even so, the prospect of modest modifications is still being determined.
