Decade-old Bitcoin wallets make a $60 million exit: What’s going on?

• Two wallets sell over $60 million worth of BTCs.
• Key metrics have declined recently.

Recently, two wallets, which had remained inactive for several years, have initiated movement, transferring all their Bitcoin [BTC] holdings.

This action coincides with a decline in key on-chain metrics and heightened levels of greed in the Bitcoin market.

Bitcoin wallets rake in millions of dollars in gains

Recent data from Lookonchain revealed that two Bitcoin wallets, which have been dormant for nearly 11 years, have recently become active. These wallets, each containing 500 BTC, sold their entire holdings.

Data showed that BTC was priced at $124 when they were purchased years ago, bringing each wallet’s value to approximately $62,000.

Also, with the current Bitcoin price, the wallets sold their holdings for over $30 million each, totaling approximately $60.9 million. 

Furthermore, this significant move raises the question whether it will trigger reactions from key on-chain metrics that have recently experienced declines.

Bitcoin key metrics declines

According to Santiment data, Bitcoin has experienced significant declines in daily active addresses, transaction volume, and whale transactions.

Analysis of the data revealed that these metrics saw significant declines following their peaks in February. Also, they are currently approaching historic lows.

Towards the end of April, daily active addresses exceeded 815,000, transaction volume surpassed 1.5 million, and whale transactions totaled over 73,500. 

Source: Santiment

However, as of this writing, daily active addresses have decreased to around 545,000, transaction volume has fallen to approximately 495,000, and whale transactions have reduced to around 26,500.

Greed dominates the Bitcoin sentiment

According to the Bitcoin Fear and Greed Index

The analysis of the Index revealed that BTC had a score of 56, indicating a sentiment of greed among investors. This suggests that more people were entering the BTC market to capitalize on potential profits.

However, given the decline in key metrics that BTC was experiencing, and the recent sell-off witnessed, this could lead to a price decline.

BTC stays above 60,000 for now

AMBCrypto’s analysis of the Bitcoin daily timeframe price trend revealed that it was trading at around $61,100, representing a less than 1% increase at this time.

Read Bitcoin’s [BTC] Price Prediction 2024-25

This slight uptick followed its previous trading session in the $60,000 price zone. However, examining the stochastic indicator indicated a potential price reversal on the horizon.

Typically, a crossover in the blue or red line of the indicator could signal an impending reversal in price direction.

Source: TradingView