In a recent development, a considerable amount of Bitcoin that had been dormant for years has sprung back to life. On Thursday, 139 Bitcoin from address 1H1Ab6 were transferred to a newly created Segwit address, marking the awakening of these long-held coins.
The owner, who held onto the Bitcoin for almost twelve years, initially purchased them in June 2011 for a little over $2,250. The value of these coins has since skyrocketed to an astounding $3.5 million at the current price of Bitcoin.
These coins fall under the category of Ancient Supply, referring to Bitcoin acquired at least seven years ago, although some analysts use a five-year threshold. This year has witnessed a notable movement of ancient Bitcoin, with 3,200 BTC being revived, including 1,100 that pre-date 2013, as reported by Glassnode.
These instances of Bitcoin from the early days being moved have piqued curiosity in the market. Last year, an extremely old wallet created in October 2010, when the price was a mere $0.19 USD, sold off 429 Bitcoins. In February 2023, another address from the Satoshi era moved 412 Bitcoin worth $9.6 million after more than a decade of dormancy.
Determining the motivations behind these movements and whether they indicate a change in conviction or simply personal custodial practices is challenging. Given the pseudonymous nature of Bitcoin, it is unlikely that we will ever truly know who owns these ancient coins or what they intend to do with them. This ambiguity extends to Satoshi’s stash, which is believed to account for 5% of the total Bitcoin supply.
Glassnode, however, does provide some insights. According to the on-chain analytics provider, dormant coins become increasingly unlikely to be sold after 155 days of inactivity. Yet, when they are eventually sold, it could signal a shift in conviction. In a recent newsletter, Glassnode revealed that the number of Bitcoin held for the long term is growing by 100,000 BTC each month.
Despite these recent movements and sporadic spending of satoshi-era coins, a significant portion of Bitcoin’s ancient supply, approximately 4.25 million, is widely considered to be lost forever, with only 356,000 having been spent to date.
