A long-dormant Bitcoin (BTC) wallet that dates back to April 2010 reportedly moved 50 BTC, or $3.328 million, according to the on-chain analysis site Lookonchian.
Dissecting the Transaction: An Investigation of Possible Causes
50 Bitcoin that were mined more than 14 years ago, when each block reward was 50 Bitcoin, were split into two transactions, according to Lookonchian: 17 Bitcoin ($1.1 million) for one wallet and 33 Bitcoin ($2.2 million) for another.
The receiver wallet, which received 17 BTC, has demonstrated a pattern of frequent transactions, which may point to its connection to Coinbase or another bitcoin exchange.
A miner wallet woke up after being dormant for nearly 14 years and deposited 50 $BTC($3.28M) to #Coinbase 5 mins ago.
The miner earned 50 $BTC from mining on Apr 23, 2010, and has been holding it to this day.
Address:
15sxzZ4QSaoiMo5KYH9ab4xQj34yeJmKgb pic.twitter.com/DRw9U5Xy8N— Lookonchain (@lookonchain) April 15, 2024
The investigation also shows that the Bitcoin that was delivered to this wallet was later combined with money from other Coinbase-affiliated accounts, indicating that the exchange may have received a deposit.
The remaining 33 BTC, however, were moved to a different wallet. This would suggest that, although using a different address—a frequent tactic to improve transaction privacy—the miner was still in control of this Bitcoin.
Recovery of Bitcoin Amid Upcoming Halving
This current action aligns with the recovery of Bitcoin after a precipitous fall that saw its price fall from over $70,000 to $62,000 over the course of the weekend. Nevertheless, as of this writing, the price of Bitcoin is $64,109, up 0.5% from the previous day.
This price increase coincides with the excitement surrounding the impending Bitcoin Halving, which is set to occur on April 20 in 5 days.
Notably, the Bitcoin Halving is a scheduled occurrence that takes place once every 210,000 blocks are mined, or roughly every four years. During this time, the incentive that bitcoin miners receive for verifying transactions and protecting the network is reduced by half.
The incentive was first set at 50 BTC every block when Bitcoin was first introduced in 2009. But because of the reward’s halving, the rate at which new Bitcoin is minted has decreased. This change is intended to regulate the amount of Bitcoin in circulation, gradually increasing its scarcity and ultimately enhancing its deflationary characteristics.
Furthermore, according to recent predictions, the impending Halving event could cause BTC miners to lose more than $10 billion. According to Bloomberg, there could be a number of reasons for this loss, such as miners having to contend with more intense competition from AI firms.
Adam Sullivan, the CEO of Core Scientific, observed that power supply in the US is becoming more scarce, in part because of significant investments made in data centers by internet behemoths like Amazon. Miners looking for reasonably priced power contracts have additional challenges as a result of this rivalry for resources.
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