Long-term Bitcoin (BTC) holders have made generational wealth over the last decade. According to the statistics on BitInfoCharts, a BTC wallet that had been dormant for more than five years has transferred 8000 coins, worth around $535.6 million today, to Binance. The wallet received the coins on Dec. 6, 2018. Back then, the price of one BTC was about $3,810. Since December 2019, BTC’s price has risen by about 1673%.
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As of now, it is unclear who the wallet owner is. It may be a Bitcoin whale, a financial institution, or even Binance itself. The owner may want to book profits after holding for over five years.
Will Bitcoin’s price dip after the transfer?
Sending assets to an exchange is often considered a bearish development as it increases the chances of them being sold in the market. If 8000 BTC are put up for sale, it may negatively impact the asset’s price.
Bitcoin has faced a correction over the last few days, falling below $68,000. The dip may be due to the FOMC (Federal Open Market Committee) meeting scheduled for June 12, 2024. Moreover, the US employment data may have also had an impact on BTC’s price.
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BTC’s price has fallen 0.9% in the last 24 hours, 5.3% in the weekly charts, and 2.2% in the 14-day charts. However, the asset is still up by 10.3% over the previous month.
According to crypto analyst Ali Martinez, BTC’s price ‘loves to rebound after every FOMC meeting.’ Therefore, we may witness a rally very soon.
However, the analyst has also highlighted that BTC has struggled in the third quarter, which we will enter in about a month. Hence, we may face a correction in late July of this year.