Pakinomist – (BTC) is experiencing market volatility as the asset struggles to break and hold above the $95,000 resistance level. In the midst of this price volatility, a Bitcoin whale has hit a massive valuation level after spending six years dormant.
Whale activity fuels the market’s speculation
According to an X post from Lookonchain, the whale’s wallet suddenly became active when the user deposited 500 BTC worth $46.87 million into Coinbase (NASDAQ: ) Prime.
While the intent of this massive deposit is currently unknown, it usually signals a potential intent to sell. This speculation sounds plausible given the value of the asset at the time the whale made the purchase.
Six years ago, Bitcoin’s average price was $7,000. That is, a whole 500 BTC was accumulated to about $3,500,000. The whale’s holdings have now turned a staggering profit and are worth over $47 million at current market value.
As of this writing, the BTC price changed hands at $94,404.63. But using a sunk price of $94,400 gives a value of $47,200,000. This makes a profit of $43,700,000 if the whale decides to sell out of the total inventory.
Analysts speculate that since Bitcoin has entered its distribution phase, the whale may have decided to sell these 500 BTC. The whale may be thinking of raising profits for possible reinvestment in other ventures, while it is probably just liquidating.
Market implications and stakeholder perspective
Despite the broader market price swings, some stakeholders still believe that Bitcoin will rise massively.
Certified NBA legend Scottie Pippen insists that the current price movement is a bear trap artificially created to lure investors into selling. Pippen believes BTC will float after most people dump it on the market. Therefore, he advised his followers not to sell.
Regardless of the reason the 500 BTC whale moved, market watchers will be tracking his next move to see if selling is part of it. A large holder with 357 BTC also became active after 11 years – just before the end of December 2024.
