Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
Share
A long-inactive Bitcoin wallet sprang to life Thursday, transferring 2,000 BTC, worth about $222m, into 51 new addresses, sparking debate on whether early holders are preparing to sell or simply reorganizing their funds.
Onchain Lens shared blockchain records showing the coins were split across multiple new wallets, with 50 wallets receiving about 37.5 BTC each and one receiving 121 BTC. The transactions were recorded at block height 919298, costing less than $6 in total network fees.
On-chain data suggests the sender was a dormant address, meaning it hadn’t moved coins in several years. Such wallets are typically linked to early adopters or miners, often referred to as Bitcoin OGs.
Their sudden activity usually attracts attention because their holdings can influence market sentiment if moved to exchanges.
2,000 BTC Whale Move Seen as Custodial Reshuffle While Traders Eye Leverage Reset
So far, on-chain data shows the coins haven’t reached any exchange addresses. This suggests no immediate intent to sell.
Instead, the movement pattern points to internal management. The whale distributed funds to dozens of new wallets, a sign of a custodial reshuffle or security upgrade. Such steps are common among large holders seeking better privacy or updated wallet formats.
The new wallets use SegWit, short for Segregated Witness. This Bitcoin upgrade, introduced in 2017, improves transaction efficiency, reduces fees and increases network capacity. Over the years, many long-term holders have gradually migrated to SegWit wallets as part of broader security and efficiency upgrades.
Despite the large transfer, Bitcoin’s price held near $111,400, down 1%, showing little immediate market reaction.
Analysts said structural demand for BTC remains firm even after last week’s $19b liquidation event that flushed out overleveraged traders.
Doug Colkitt, initial contributor at Fogo, said that there’s “just a lot of leverage in the system.”
“This happens in crypto periodically — leverage builds up, and then it all gets flushed,” he added. “It feels a lot like May 2021, where nothing obvious happened except that too many people had been leveraging up for months.”
As Whales Shift Funds, Traders Load Up on Shorts Across BTC, ETH and SOL
Still, the whale’s timing comes amid heightened market tension. Some traders interpret it as a precautionary shift, while others see it as a potential prelude to profit-taking if prices rebound.
At the same time, bearish sentiment is growing on derivative platforms. Data from Lookonchain shows that one trader has opened a 3,440 BTC short position, worth around $392m, already sitting on $5.7m in unrealized gains.
Two other large traders have built short books worth nearly $180m across assets including ETH, SOL, and DOGE, signaling cautious positioning among professional investors.
Analysts believe the market remains in a fragile state, with the next leg likely to depend on macro drivers such as Federal Reserve policy, US–China trade dynamics and liquidity conditions.
https://cryptonews.com/news/bitcoin-og-transfers-2k-bitcoin-51-wallets-are-whales-looking-to-dump/
