A retired Bitcoin miner has moved an enormous amount of acceptably 1,100 BTC from his wallet that has been dormant for the past eight years. Fortunately, these funds have had little impact on the market, but the rationale behind this transaction is more interesting.
The wallet received initial funds from nine wallets and went dormant for the past eight years, only returning to the industry today, sending 518 BTC and 587 BTC to addresses ending in “zvsd” and “r6YT,” respectively.
A retired miner moved 1,100 BTC that was dormant for 8 years!
Who sent these coins to where and why?
— CryptoQuant.com (@cryptoquant_com) August 1, 2022
Large transaction reflection was also noticed in Spent Output Age Bands, which reflect the age of cryptocurrencies spent on the chain. According to the on-chain data, the coins were not sent to an exchange address, so the miner exerted no selling pressure, which explains the lack of market volatility. On-chain analysts expect almost half of these funds to be moved to a custody service. One of the addresses receiving BTC can be used by multiple digital signatures; this is a function we usually see in wallets related to custody services.
Mining Bitcoin for less than $28,000 makes virtually any mining rig unprofitable, given the significant rise in electricity costs worldwide. Fortunately, Bitcoin mining difficulty is already falling, which could attract more hashing power in the foreseeable future.