4-Year-Old Bitcoin Slumber Ends: $3 Million BTC Awakens

In a move that has caught the eye of cryptocurrency analysts, a whopping 50 bitcoin (worth roughly $3.3 million) emerged from a digital slumber today after sitting untouched for nearly 14 years. This activity from an early Bitcoin miner suggests they might be consolidating their holdings or cashing in on their investment.

A Look Back: Mining in the Early Days

Blockchain analysis firm Lookonchain pinpoints the origin of these Bitcoins to April 2010, a time when the mining reward for each block stood at a hefty 50 BTC (compared to today’s figure of a little over 6 BTC, soon to decrease further). The wallet remained largely inactive, receiving only a small, negligible amount of Bitcoin in 2020 (often referred to as “dust”).

A Sudden Stirring: The Funds Move On

However, things changed dramatically around 3:00 AM ET today. A transaction broke the silence, splitting the 50 BTC into two separate transfers: 17 BTC ($1.1 million) to one wallet and 33 BTC ($2.2 million) to another.

Destination: Exchange or Consolidation?

The 17 BTC went to a wallet with a history of quickly moving received funds onwards. This characteristic aligns with recipient wallets used by cryptocurrency exchanges. Supporting this theory, blockchain intelligence platform Arkham identified the receiving address as potentially linked to Coinbase. Further movement of these Bitcoins, likely combined with funds from other Coinbase wallets, suggests a possible exchange deposit.

The Mystery of the 33 BTC

The remaining 33 BTC were sent to a brand new wallet with no prior activity. While this might appear like a complete transfer, it’s possible the Bitcoins haven’t actually left the miner’s control. The Bitcoin blockchain requires all funds within a wallet to be moved during a transaction. Any unspent coins are sent back to the same wallet, albeit often under a new address for privacy purposes.

A Trend of Reawakening?

This incident follows a recent string of movements involving dormant Bitcoin. On March 23rd, the then-fifth-richest Bitcoin address shifted a staggering $6 billion worth of BTC to three new destinations. A week later, another wallet that had been inactive for nearly 12 years transferred its entire holdings of 500 BTC (valued at roughly $35 million at the time) to multiple new addresses.