A long-dormant Bitcoin whale from the Satoshi era has transferred more than $1.1 billion worth of Bitcoin to centralized exchanges in recent hours, raising concerns of a possible market correction during a typically low-liquidity weekend.
After holding their stash since 2011, the Satoshi-era whale, or large cryptocurrency investor, first transferred 40,000 Bitcoin (BTC) worth over $4.6 billion on July 15, followed by a second transaction of 40,000 BTC on July 18 to Galaxy Digital, Cointelegraph previously reported.
According to blockchain intelligence platform Lookonchain, Galaxy Digital has since moved more than 10,000 BTC — worth about $1.18 billion — to major crypto exchanges, including Binance, Bybit, Bitstamp, Coinbase and OKX.
“The 10,000+ $BTC comes from the Bitcoin OG holding 80,009 $BTC($9.68B),” Lookonchain said on X.
The whale’s multibillion-dollar transfers, paired with the new auditing requirements enforced by the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, have sparked concerns among industry watchers over a potential Bitcoin correction.
“That alone will burst the biggest bubble and fraud in financial history: Bitcoin. It’s entirely propped up by fake money printed out of thin air,” said Jacob King, financial analyst and the CEO of WhaleWire, in a July 18 X post.
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Yet from a historical perspective, “dormant whale movements have not consistently preceded significant market corrections,” analysts from Bitfinex exchange told Cointelegraph, adding:
“This whale movement, although eye-catching, should not overshadow the constructive momentum the crypto industry is gaining on the regulatory front.”
Long-term whales “re-engaging with the network” may signal a broader shift toward “readiness for the next institutional cycle,” instead of a bearish pivot, the analysts said.
Whale’s sale may be absorbed
Despite concerns over a wider correction, some industry watchers said that the $9.6 billion Bitcoin sale may all be absorbed by the cryptocurrency market.
Onchain analyst EmberCN said on X that about 12,000 BTC, or $1.38 billion, remain to be sold. He added that the whale is likely unloading the assets via a combination of over-the-counter (OTC) and secondary market sales:
“This means that the [80,000 BTC ancient whale] likely has about 12,000 BTC ($1.38 billion) yet to be sold, and with the current market liquidity, absorbing the remaining portion of these coins should not have a significant impact.”
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Some industry watchers suggest the moves reflect a deeper shift in crypto market structure.
Recent whale transfers suggest the “Bitcoin cycle theory is dead,” according to Ki Young Ju, founder and CEO of blockchain analytics platform CryptoQuant.
“Last cycle, whales sold to retail. This time, old whales sell to new long-term whales,” said Ju in a Friday X post, adding:
“Institutional adoption is bigger than we thought. Trading feels pointless. Holders now outnumber traders.”
Other crypto analysts have also pointed to the launch of the US Bitcoin exchange-traded funds and the growing institutional investments as a disruptor for the traditional four-year Bitcoin cycle theory.
Moreover, the growing institutional investment from firms such as Strategy, Tether and Metaplanet may accelerate Bitcoin’s traditional cycle and reach new all-time highs, Vugar Usi Zade, chief operating officer at Bitget exchange, told Cointelegraph.
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