According to cryptocurrency analysis firm LookOnChain, an investor burned 107 Bitcoin (BTC) worth $8.3 million after being dormant for 11 years. LookOnChain says that on May 26, five wallets sent 107 BTC to a burn address, noting that “Burning such a huge amount of money like this is just unbelievable.” Let’s discuss why someone may have burned such a large amount of BTC.
Why Did The Wallet Owners Burn So Much Bitcoin?
The first possible reason could be that the move was an accident. Old Bitcoin (BTC) addresses start with the number “1.” This is the case for the burn address as well. The wallet owner may have made a mistake while copy-pasting the address, and sent the BTC to the burn address. If this is the case, the investor may be having a really bad day.
The second reason could be that the investor just has way too much money and wanted to reduce Bitcoin’s (BTC) supply even further. BTC was trading at around $230 to $245 in May 2015, 11 years ago. 107 BTC would have cost around $26,215. There is a chance that the investor has a lot more Bitcoin (BTC) than what was burned.
Will The Burn Impact Price?
Reducing Bitcoin’s (BTC) supply could potentially lead to a price spike, given there is enough demand at the same time. BTC’s price, however, seems to see no positive price action. The original crypto has fallen to the $75,000 price level, dipping nearly 7% in the last two weeks, according to CoinGecko.
Also Read: Ark Invest’s Cathie Wood Predicts Bitcoin Could Hit $1.25 Million
Bitcoin’s (BTC) price dip is likely due to the investors anticipating interest rates to remain unchanged. Inflation figures came in higher than expected amid crude oil price surge and high bond yields. Macroeconomic pressure and geopolitical tensions may keep Bitcoin (BTC) at bay for the time being.