On Tuesday, October 18, researchers at crypto-currency analysis platform Cryptoquant identified an outflow of 48,000 bitcoins from the Coinbase Pro exchange platform. According to the researcher’s summary of the situation, a large portion of the funds were old coins.
Whale transfers 48,000 bitcoins in a spiral exchange
As bitcoin traded below the $20,000 mark and moved sideways, observers saw a number of older coins move on the chain. This onchain movement comes at a time when market volatility is expected. For example, Glassnode Insights’ latest report titled “A Coiled Spring“predicts fluctuations in the price of bitcoin in the near future.
“The bitcoin market is primed for volatility, with realized volatility and implied option volatility falling to historic lows “, Glassnode wrote on October 17. “Open interest in futures has reached new all-time highs, despite liquidations at all-time lows. Volatility is likely on the horizon, and bitcoin prices rarely stay still for long. “
Sleeping #Bitcoin moved out from Coinbase Pro
“The outflow of 48K $BTC is coming from #Coinbase Pro and has a dollar value of $940.032.000,00″
– CryptoQuant.com (@cryptoquant_com) October 18, 2022
The next day, researchers from the Cryptoquant cryptographic analysis platform tweeted at that 48,000 dormant bitcoins were transferred to the blockchain on Tuesday. “Dormant bitcoins are out of Coinbase Pro“, said Cryptoquant on Twitter. “The 48K BTC outbound flow is from Coinbase Pro and has a dollar value of $940 million.“
Cryptoquant stated that a “large part“of the spending on the blockchain came from very old batches of bitcoins, at least three to five years old. The researchers estimate that about 32,000 BTC of the 48K were between three and five years old. “Further investigation is needed to conclude whether this is an internal flow to the exchange, sent to a new wallet, or simply a clean exit“, Cryptoquant to detailed yesterday.
In an update following the initial post, Cryptoquant explained that 8000 BTC was deposited on Coinbase shortly after. “The transactions were partially split into batches of 122 BTC. We saw this multiple times during the 2021 bull run, didn’t we? Ahem institutions“, added Cryptoquant.
11-year-old ‘sleeping bitcoins’ wake up after years of slumber
In addition to the 48,000 coins circulating on the blockchain, the vast majority of which are dormant bitcoins, a few addresses from 2011 sent a few batches of “dormant bitcoins“, an address created on May 14, 2011, when they were transferred on October 10, 2022, to the height of block 758,046.
On the same day, a dormant address created on October 24, 2011, moved 40 BTC. Seven days later, a batch of 10.29 dormant bitcoins from an address created on September 20, 2011, was transferred for the first time in 11 years.