After years of slumber, some ancient Bitcoin is waking up, and the market is watching closely. As of Thursday, 139 Bitcoin belonging to address 1H1Ab6Jkpx2ZtMbBZ9ctxaXPMDmf6k3JvK moved into a newly created Segwit address, marking the revival of coins bought in June 2011 for a bit over $2,250 dollars. The current value of the Bitcoin is an impressive $3.5 million, showcasing the growth potential of holding onto cryptocurrencies for extended periods.
This movement is part of a larger trend this year, with 3,200 BTC from ancient supply reviving, 1,100 of which pre-date 2013, according to a report from Glassnode. While the market is intrigued by these movements, it’s hard to discern whether they are related to selling the coins or simply personal custodial practice.
Some wallets have been silent for a decade or more before moving significant amounts of Bitcoin, spurring curiosity and speculation in the market. In March last year, an ancient wallet created in October 2010 sold off 429 Bitcoins, and a year later, in February 2023, another Satoshi-era address moved 412 Bitcoin worth $9.6 million after more than a decade.
Despite the recent movements, many believe the majority of Bitcoin’s ancient supply is lost forever. Out of 4.25 million ancient coins, only 356,000 have ever been spent. However, Glassnode’s on-chain analytics offer some insights into the long-term holding patterns of Bitcoin. The provider suggests that dormant coins are unlikely to sell after 155 days, but when they do, they could signal a change in conviction.
Furthermore, a recent newsletter from Glassnode showed that the number of Bitcoin held long term is growing by 100,000 BTC per month, indicating that many investors believe in Bitcoin’s potential as a long-term asset. However, given Bitcoin’s pseudonymous nature, it’s impossible to know who these ancient coins belong to or what they are doing with them, especially when considering Satoshi’s stash, which is said to sit at 5% of the total supply.
In conclusion, the revival of ancient Bitcoin has piqued the market’s interest, with analysts speculating about whether these movements signify a shift in conviction or personal custodial practice. While the market remains divided on this issue, it’s clear that long-term holding of Bitcoin is becoming increasingly popular, with many investors seeing the potential for significant growth.
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