Bitcoin has recently been plagued with massive selling pressure, with different entities looking to offload their holdings. This time, on-chain data shows a dormant Bitcoin wallet that transferred over $6.8 million in Bitcoin, suggesting that this whale may also be looking to sell their tokens.
On-chain data shows that a Bitcoin wallet (1Nxxi) that had been dormant for 12 years transferred funds for the first time on July 4. The wallet contained $6.8 million worth of Bitcoin, with all these funds moved in two separate transactions. 76 BTC ($4.46 million) was initially sent from the wallet to an unknown address (3Ctd5), and 43 BTC ($2.46 million) was sent in the second transaction to the same unknown address.
The last outflow from this address came in 2012 when 2.98 BTC was sent to an unknown address. These recent transactions have raised concerns for the crypto community because they suggest that the whale in question may be looking to offload its holdings. They also come at a time when Bitcoin is facing significant selling pressure.
As such, a sale of such magnitude could compound Bitcoin’s problems and lead to further declines for the flagship crypto. However, on-chain data shows that the 119 BTC that was transferred is still intact in the unknown address (3Ctd5) to which it was sent. This is undoubtedly a relief for the crypto community since these tokens would have long been sent to an exchange if this whale was looking to offload their holdings.
In the meantime, Bitcoin is still facing intense selling pressure from other entities, including the German government. On-chain analytics platform Arkham Intelligence revealed that the German government is selling up to $175 million worth of Bitcoin. In the last 24 hours, they have moved 1,300 BTC ($76 million) to Kraken, Bitstamp, and Coinbase.
They also transferred 1,700 BTC ($99 million) to an unknown address (139Po). Arkham claimed that the funds to this unknown address are likely deposits for an institutional service or OTC.
Defunct crypto exchange Mt. Gox recently announced that it has begun repayments to its creditors. The rehabilitation trustee for the crypto exchange is said to have already made Bitcoin repayments to some rehabilitation creditors through designated crypto exchanges.
This news is significant as it is set to pile more selling pressure on the flagship crypto, with some of these creditors likely to liquidate their holdings upon receipt of their repayment. Mt. Gox is expected to pay its creditors up to $9 billion worth of crypto, with Bitcoin accounting for most of these tokens.
At the time of writing, Bitcoin is trading at around $54,300, down over 7% in the last 24 hours, according to data from CoinMarketCap.
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