Despite bitcoin’s (BTC) price dipping 6.4% this week and hovering below the $26K mark, a flurry of activity was noted between September 5th and 6th as several substantial ‘sleeping bitcoins’ stirred. After a lull of slightly over six years, an individual splurged 359.92 BTC, equivalent to $9.2 million, across eight distinct transactions. Moreover, on Wednesday, September 6, an untouched trove of 500 bitcoins was mobilized for the first time in nearly seven years.
Dormant for Years, $21 Million in ‘Sleeping Bitcoins’ Spring to Life
Many bitcoin enthusiasts keep their coins tucked away for years, sometimes even spanning decades. However, at the owner’s discretion, these dormant bitcoins occasionally see the light of day, either being spent or shifted for various motives.
This week, despite BTC’s value against the U.S. dollar not being as robust as earlier in the year, some holders have chosen to activate old unspent transaction outputs (UTXOs). On September 5, 2023, an entity or individual opted to mobilize a total of 359.92 BTC through eight distinct transactions (1, 2, 3, 4, 5, 6, 7, 8), as detected by btcparser.com.
Four of these transactions secured confirmation at block height 806295, while the remaining three found confirmation at block height 806,299. These transactions originated from coins acquired between June 13, 2017, and June 23, 2017. All eight transfers were executed with minimal to no discretion, earning them low privacy ratings on Blockchair’s privacy meter tool. At present BTC exchange rates, this cache of 359.92 BTC is valued at $9.2 million.
The subsequent day witnessed a transfer from an address established on October 12, 2016, nearly seven years prior. This specific transaction involved 500 BTC, equivalent to $12.79 million at current rates. The address “14LZG” initiated this transfer for the first time at block height 806,465. Two beneficiaries were on the receiving end, with one pocketing 150 BTC and the other 350 BTC. This transaction, too, lacked discretion, scoring a mere 0 out of 100 on Blockchair’s privacy tool, with identified address matches being one of the vulnerabilities.
The reasons behind these so-called ‘sleeping bitcoins’ springing to life after prolonged periods remain a mystery. It’s crucial to clarify that the terms “spend” or “spent” in this context merely indicate a transfer to a different address. While this could imply a sale on the open market, it might also suggest the owner’s shift to an alternative cold storage method.
What do you think about the sleeping bitcoins spent on Tuesday and Wednesday? Share your thoughts and opinions about this subject in the comments section below.