A long-inactive Bitcoin miner wallet transferred its entire 50 BTC balance this week, bringing to an end more than 15 years of silence on the blockchain.
The unexpected move unfolded amid heightened market uncertainty and renewed pressure on the world’s largest cryptocurrency.
Old Mining Bitcoin Wallet Springs Back to Life
According to Lookonchain, the wallet, which last showed activity in March 2010, suddenly sent out 50 Bitcoin valued at roughly $4.33 million. Blockchain records confirm the coins were mined on March 18, 2010, and have remained untouched ever since.
In its first transaction in nearly 16 years, the owner split its holdings into five newly created addresses, distributing 10 BTC to each. As of press time, the miner’s identity remains unknown, adding intrigue to the rare on-chain event.
The timing of the transfer coincided with a notable downturn in Bitcoin’s price. The world’s largest cryptocurrency fell about 8% on Monday, extending a slump that has lasted for almost two months.
Specifically, prices dropped from around $91,000 late last week to a Monday low near $84,000, as investors reacted to concerns that Japan may raise interest rates.
A potential shift by the Bank of Japan raised fears of an unwind of “yen-carry trades,” in which investors borrow yen to buy higher-yielding assets, including US stocks and Bitcoin.
Analysts Recall a Similar Shock in 2024
The market’s reaction drew comparisons to the volatility seen in August 2024. Investment analyst Nic Puckrin highlighted how a similar unwinding of yen-funded trades during that period drove Bitcoin down from above $66,000 to around $54,000 within days.
Puckrin noted that such patterns can reappear quickly and urged investors to brace for more turbulence. Even so, he pointed out that the broader economic backdrop still favors risk assets, especially with rising expectations of a potential U.S. Federal Reserve rate cut in December.
Corporate Pressure Adds to Market Unease
Market sentiment deteriorated further following developments at Strategy, the largest corporate holder of Bitcoin.
The company disclosed a new $1.4 billion reserve intended to cover upcoming dividend and interest obligations. The announcement aimed to ease fears that the firm might need to sell part of its roughly $56 billion Bitcoin stash if prices continue to weaken.
While Strategy’s mNAV valuation stood at 1.11, concerns are rising that it could soon turn negative. Last week, CEO Phong Le hinted that a negative reading might force the firm to offload some of its holdings.
Investors reacted sharply. Shares of Strategy dropped more than 10% on Monday and are now down about 66% from their November 2024 peak. The company also raised the yield on its Series A “Stretch” preferred stock to 10.75%, with dividends paid monthly.
ETF Flows Show Modest Stabilization
Amid the turbulence, U.S. spot Bitcoin ETFs showed tentative signs of stabilization. The funds recorded around $70 million in inflows last week. This provided a brief respite following nearly $4.6 billion in outflows over the past month.
Much of the earlier pressure came from the iShares Bitcoin Trust (IBIT). This fund has now posted five straight weeks of withdrawals, the longest streak since its January 2024 debut.
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