Large-scale Bitcoin investor, age 12, initiates $116 million transaction; potential for market turbulence and crash concerns?
In the world of cryptocurrency, a series of significant events has unfolded over the past few days, with whales making a notable impact on Bitcoin's price.
On the 15th of September, a newly created whale wallet received a staggering 5,817 BTC, worth a whopping $678 million, from FalconX. This sudden influx of Bitcoin has added to the growing accumulation by large entities, causing an upward pressure on the btc price.
Interestingly, the spike in Supply Adjusted Dormancy was observed on the same day, only to retrace to a lower level on the 16th. This suggests that some dormant Bitcoin coins have started to move, as indicated by CryptoQuant data.
One such dormant whale, inactive for 12 years, moved 1,000 BTC worth $116.88 million on the 15th. This whale had initially received 1,000 BTC at a price of $847, locking in a profit of over $116 million. The movement of these coins was reported by Lookonchain.
The strategic repositioning of large players is evident, with an increase in the Balance Change of Fish and Sharks to 62.5k BTC, with 12k BTC added in just three days. This was determined using Checkonchain data.
The price of Bitcoin has rallied to a local high of $117,266 after a strong comeback from a low of $107k. If whales continue to accumulate, Bitcoin could reclaim $118,102 and push toward $119,352, as suggested by further analysis.
However, it's important to note that Bitcoin's Exchange Netflow has stayed negative for four consecutive days, with one positive print in the last eight. This indicates more outflows compared to inflows. If the coins transferred by a dormant whale end up on exchanges, it could result in significant downward pressure on BTC, potentially causing prices to retrace to $115,203.
On a broader scale, recent reports suggest that US financial institutions and sovereign wealth funds from countries like Norway and the USA have increased their Bitcoin purchases. With expectations that institutional investors will significantly expand their Bitcoin allocations before the end of 2025, this growing institutional demand could drive the Bitcoin price to new highs, potentially reaching $250,000 to $700,000. This could fundamentally transform Bitcoin into a major alternative asset class.
Despite these positive developments, downside risk for Bitcoin's price remains near $115,203. The U.S. CBDC ban moves forward amid GOP-Democrat tensions, which could potentially impact the cryptocurrency market in the future.
At press time, Bitcoin trades at $111,151, having risen 1.24% on daily charts. As the story unfolds, it will be fascinating to see how these events shape the future of Bitcoin and the broader cryptocurrency market.
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