A Bitcoin (BTC) whale that had been dormant for around four years has recently moved its entire BTC stash worth around $136.9 million to two new wallets, potentially as they move to realize gains of around $112 million.
According to on-chain monitoring service Lookonchain, this Bitcoin whale accumulated their funds between October 2018 and December 2019 at an average price of $6,889 per coins, which means that at current market prices they are sitting at an unrealized profit of $112 million after paying nearly $25 million for their 3,623 BTC.
Notably, data shows that the whale’s profit at the peak of the last bull run, in November 2021, was of around $244 million – but they didn’t sell their funds and instead remained dormant. The whale’s recent movement comes after Bitcoin’s price chart formed a “strikingly similar setup” to three years ago, ahead of its last bull run.
It also comes at a time in which supply on cryptocurrency exchanges has dropping steadily over the last few months as traders move their funds to wallets under their control, which means there’s less BTC available on the market to be bought.
Bitcoin’s supply on exchanges is now at its lowest level since December 2017 to now stand at 5.38%, hinting at a potential price rise if there’s a sudden surge in demand.
That surge could come from Tether whales, which have accumulated $1.67 billion worth of USDT, suggesting they’re getting ready to buy cryptocurrencies on the market in a buying spree.
A potential catalyst for investors to allocate their USDT could be the potential launch of a spot Bitcoin exchange-traded fund (ETF) in the United States. Earlier this year, major financial powerhouses that collectively manage an astounding $27 trillion in assets are making inroads into the world of Bitcoin and cryptocurrency after a race to list the first spot Bitcoin exchange-traded fund (ETF) in the United States kicked off.
Financial behemoths, include BlackRock, Fidelity, JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco, and Bank of America, started making inroads into the cryptocurrency space after the world’s largest asset manager BlackRock filed to list a spot Bitcoin exchange-traded fund (ETF) in the United Stats on June 16.
The $27 trillion figure, it’s important to point out, represents a grand total of assets under management across the aforementioned institutions, and only a minuscule fragment of this gargantuan sum is anticipated to be channeled into cryptocurrency investments.
Major Tether whales are seemingly getting ready to buy ahead of an unexpected spot Bitcoin ETF launch in the United States, which would allow investors to gain exposure to the cryptocurrency without owning private keys and bring in additional demand for it.
Featured image via Pixabay.