Renowned CryptoQuant analyst Maartunn indicates that 8,000 Bitcoin (BTC) which had been inactive for a period of five to seven years were abruptly transferred, exacerbating existing bearish worries within the cryptocurrency space. This event follows a rather tumultuous week as BTC values attempted to surpass $89,000, after an initial consistent bullish ascent, only to be overwhelmed by significant sell-off pressures influenced by US President Donald Trump’s aggressive tariff regulations.
$674 Million In Aged BTC Moves In One Block – A Reason For Concern?
The Spent Output Age Bands is an essential indicator that evaluates how long Bitcoin coins stay inactive before being transferred. According to Maartuun in an X post, this measure has recently disclosed that 8,000 BTC valued at $674 million, previously transferred between 2018 and 2020, have recently been moved in a single block attracting considerable market interest.
This transfer comes on the heels of a series of recent activations of previously dormant Bitcoin reserves. On March 24, a wallet that had been inactive for 14 years suddenly transferred 100 Bitcoin worth $8.5 million. Additionally, in early March, six vintage Bitcoin wallets also shifted nearly 250 BTC valued at $22 million.
Significantly, the latest transaction noted by Maartunn is of a much larger magnitude with potentially considerable ramifications for a volatile Bitcoin market. In general, a transfer of such a substantial volume of BTC from a prolonged state of dormancy is typically perceived as an indication of forthcoming selling pressure, likely resulting in substantial price adjustments.
Nonetheless, there are alternative potential non-bearish reasons for these transactions, including internal wallet organization by institutional investors or major holders, as well as the restructuring of cold storage. At present, the identities of the recipients of the 8,000 BTC remain unknown, which lessens the likelihood of a bearish response from BTC holders.
Bitcoin Price Snapshot
Over the past day, Bitcoin prices fell by 4.00% following the US Government’s announcement to implement a 25% tariff on automobile imports and products from China, Mexico, and Canada beginning April 3. This represents the latest adverse reaction from the crypto market to President Trump’s international trade strategies, following similar issues in early February and mid-March.
These actions by the Trump administration are stoking fears of a potential economic downturn, which could further drive high-risk assets like BTC out of investors’ portfolios, leading to additional declines.
As of now, Bitcoin is trading at $83,693, reflecting a decrease of 0.72% and 2.53% over the past week and month, respectively. Meanwhile, the asset’s daily trading volume has increased by 19.38%, amounting to $31.58 billion. The BTC market capitalization currently sits at $1.66 trillion, accounting for a significant 61.1% of the overall cryptocurrency market.
BTC trading at $83,727 on the daily chart | Source: BTCUSDT chart on Tradingview.com