This week, after the price of Bitcoin briefly soared to a new high of $69,000, it quickly plummeted by nearly $10,000, leaving leveraged investors empty-handed. And the trigger for this plunge? It turns out to be an ancient miner.
(Previous summary:
Bitcoin just broke through $69,000 and got trapped? How do six crypto leaders view the future of BTC?)
(Background supplement:
Bold Proposal in Arizona, USA: Including Bitcoin in Retirement Investment Portfolio)
Contents of this article:
The Dormant Mysterious Address
Speculation on the OG Address
Salute to the OG
Shortly after Bitcoin surged to $69,000 on the 5th, it quickly turned to a sharp decline in less than 5 minutes, with the price dropping below $60,000 at one point. The surge and plunge caused nearly $1.2 billion in liquidation across the entire network. A total of 318,392 traders were liquidated in a single day, with a total amount of $1.19 billion.
While the market speculated on the cause of this plunge, the community discovered through data from CryptoQuant that around $69 million worth of 1,000 bitcoins were transferred from an address over a decade ago to Coinbase, seemingly related to a miner.
Generally, when tokens that have been dormant for a long time are transferred to large cryptocurrency exchanges, it usually indicates a precursor to selling. Bradley Park, an analyst at CryptoQuant, also stated in a report, “Considering that the order book shows that there is liquidity for 5-10 bitcoins for every $100 change in price, selling 1,000 bitcoins is likely to trigger a significant price drop.”
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Transaction records
According to the transaction records of the address, it has been active since 2010 and has gone through several cycles over the past 14 years without any outgoing transactions, until Bitcoin once again reached the milestone of $69,000 and refreshed its all-time high. Only then did the address have new activity.
Although there is no evidence to indicate that these bitcoins transferred to Coinbase have been sold, it is clear that this mysterious address has sparked a lot of speculation.
Some speculate that the owner of this address lost their mnemonic phrase and key before, which forced them into a “sleeping” state. After all, for most people, the possibility of going from 0 to 70,000 and holding onto Bitcoin through multiple cycles is very small.
Others speculate that before the sell-off, the address may have used leverage to short Bitcoin and then profit by selling a large amount of Bitcoin at once. However, this speculation is less likely, considering the enormous market value of Bitcoin today and the wide range of interests and factors involved.
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Transaction transfer records of the address
Interestingly, the community also speculates that this address is one of the addresses held by the US National Security Domain, which held a significant amount of Bitcoin through confiscation in the past. There has also been a persistent rumor on the internet that “the US government is the institution that holds the most Bitcoin today,” so it is reasonable to speculate that they chose to “unload their luggage” at the peak.
In addition, there is a fascinating speculation that this sell-off may also involve Satoshi Nakamoto himself. Although the true identity of Satoshi Nakamoto remains a mystery, the transactions of this Bitcoin OG have sparked some speculation about whether Satoshi Nakamoto may be selling Bitcoin. After all, the identity of Satoshi Nakamoto has always been very mysterious, and the movement of his addresses is one of the most dangerous “black swan events” in a bull market.
Apart from these speculations, the most common view and attitude expressed by the community regarding this address is to pay tribute to the OG.
“In a few years, this incident may be talked about like the Bitcoin pizza story.” Clearly influenced by the OG, the crypto industry still has great confidence in the price of Bitcoin. This firm belief and extraordinary patience are very touching.
“While I personally do not endorse selling Bitcoin, this elder deserves our respect because he has experienced the entire journey of Bitcoin, including every market cycle, every bear market plunge, and all the panic spreading and huge fluctuations in wealth.” Members of the Bitcoin community said so.
More importantly, compared to the strategies of making quick money in the crypto industry today, “someone who has held onto Bitcoin from 0 to 70,000 for 14 years” is more like a belief. With a solid Bitcoin belief, we can ultimately free Bitcoin from the troubles of centralization and distribute it more widely among the people. It’s hard not to salute those who have experienced FUD and market cycle storms.
And if we go through four market cycles, maybe we will also become Bitcoin OGs of tomorrow. We are still early.
Related reports
Reason for Bitcoin’s Plunge? “Satoshi Nakamoto’s Fellow Miner” Who Slept for 14 Years Sells 1000 BTC, Profits Increase 240,000 Times
Selling After 12 Years of Dormancy! “Satoshi Nakamoto’s Fellow Miner” Mines a Thousand Bitcoins in Two Weeks, BTC Value Increases 22,560 Times
Satoshi Nakamoto Is Awake? Spending £1.17 Million to Purchase “26.9 BTC” from Binance and Transfer to Bitcoin Genesis Wallet