The most recent update from LookOnChain, an on-chain analytics platform, has sent the cryptocurrency world into a tizzy. Today, June 27, the on-chain analytics reported that a dormant Satoshi-era miner wallet was reactivated after 14 years of inactivity, transferring 50 BTC to the Binance cryptocurrency exchange. This action by the miner, which comes amid a wave of frequent capitulations and fluctuations in Bitcoin prices, has sparked a round of speculation among market participants. Let’s dig deeper into why this happened.
Amid capitulation, a miner moved Bitcoin to Binance
Notably, following this year’s halving event, payouts for Bitcoin mining have decreased significantly, with miners bearing the brunt of market pressure. As Bitcoins price continues to decline, miner surrender is a new pattern that has emerged in the market. This is a phenomenon when miners scale back their operations and sell off their Bitcoin holdings because of a reduction in incentives.
According to data from LookOnChain, 50 BTC, or $3.05 million, were simultaneously transferred to Binance, one of the world’s top cryptocurrency exchanges, continuing this trend. When the deposit was made, the miner address 1PDTDwpgR was spotted.
This address is interesting because on July 14, 2010, shortly after the BTC network was launched, it had 50 BTC deposited into it. The Satoshi time alludes to the time between late 2009 and 2011, when Bitcoins mysterious maker, Satoshi Nakamoto, was dynamic in open gatherings.
There is still downward pressure on Bitcoin (BTC), which has led to miners selling in panic to mitigate the risk of further price declines. A recent analysis by Coingape Media also showed that miners’ holdings have declined significantly after the Bitcoin halving.
Apart from these facts, the drop in the BTC price has put the players in the cryptocurrency market under pressure.
Bitcoin price drop
As of this composing, the BTC was exchanging at $60,920.46, down 1.13% from the past day. The monthly chart for the flagship cryptocurrency shows a 10.95% decline, while the weekly data shows a 6.77% pullback. This bearish tendency is consistent with the recent selloff in mining stocks.
Regarding this, Bitcoin Maxi revealed that the top 5 miners held 34K BTC. He further added, “Even if they sold half of their assets, it is only $1 billion USD, or 0.1% of the asset value.” The supply side is compromised because these five produce 2,000 BTC a month.
