The crypto market was shaken by a rare outbreak on Friday, July 4th. This was once again active by dormant whales that mined Bitcoin until 2011. The Satoshi-era entity is now moving 81,000 BTC (worth approximately $8.8 billion) held for 14 years.
These important moves were the largest daily transfer volume of coins over a decade ago, sparking interesting conversations in the crypto community. Popular on-chain analysts have been pushing forward with interpretation of this phenomenon by saying, “old Bitcoin is still important.”
Why is old Bitcoin important?
In a post on the encrypted platform Quick Take, kana analyst DarkFost is awakening and shaking the market by providing an on-chain context about the importance of dormant BTC. This on-chain analysis is based on UTXO Age Bands%. This segments the total supply of BTC based on the last time it was traded.
To begin their analysis, DarkFost confirmed that the coin moved on Friday was reportedly mined in 2011 when Bitcoin was valued under $1. According to analysts at Crypto, these moves are a reminder of the impact of the miners’ market as BTC reserves are so large.
DarkFost used Utxo Age Bands%Metric to visualize how important these Satoshi-Era Miner holdings are. According to data from Cryptoquant, age bands over 10 years hold a significant 17%, the largest percentage of total BTC supply.
Source: CryptoQuant
The second largest portion of total supply (15.8%) of Bitcoin holders cohort is in the age band between 6 and 12 months. This investor group is closely followed by age bands between 3 and 5 years, followed by 14.3% of the total BTC supply. “This shift represents the transition from STH to longer LTH, suggesting that recent buyers are still holding despite the market conditions,” DarkFost explained.
Additionally, investors in age bands between the ages of 7 and 10 retain a significant portion of their total supply, reflecting the controls exercised by long-term holders in the largest cryptocurrency market. Finally, DarkFost concluded that older BTC movements are important for market dynamics as they can bring macro-level meaning.
Bitcoin price at a glance
Bitcoin prices have been relatively stable since these large coin movements occurred, but there were no signs of sales by the atoshi-era miners. At the time of writing, BTC is rated at $108,135, and does not reflect any significant changes over the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
ISTOCK featured images, TradingView chart
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