14-Year Dormant Bitcoin Whale Awakens – Dumps 20K BTC, Sparks Market Jitters
A crypto wallet untouched since 2011 just moved $1.3B in Bitcoin—and traders are sweating.
The whale's sudden sell-off triggers flashbacks to Mt. Gox-era dumps. Markets dipped 3% within hours as OI spiked 18%—classic 'buy the rumor, sell the news' behavior from paper-handed institutions.
Funny how these 'lost' coins always reappear right at resistance levels. Almost like... someone planned it? *cough* Grayscale *cough*
Silver lining: On-chain data shows retail accumulating at $58K. The old guard exits, the diamond hands enter. The cycle continues.
Strategic Moves from a Bitcoin Pioneer
According to Lookonchain, the bitcoin OG controlled eight wallets. Two received 20,000 BTC on April 2, 2011, while the other six received 60,009 BTC on May 4, 2011.
Four addresses woke up on July 4, 2025, transferring 40,000 BTC. Several hours later, the other wallets also stirred to life, moving 20,000 BTC, priced at about $2.17 billion, to a new location.
Then, on July 14, after a short period of quiet, the ancient hodler moved 40,009 BTC worth some $4.68 billion to Galaxy Digital, over several hours, with the platform funneling some of these funds directly into Binance and Bybit. It confirmed the whale’s intention to at least sell portions of the stash, moving beyond initial speculation about mere wallet consolidation or security upgrades.
Given the sheer scale of the transactions, pseudonymous CryptoQuant analyst OnChainSchool has compared them to the Mt. Gox wallet reactivations in 2024. When the defunct exchange’s trustee began moving BTC last year, it caused the flagship cryptocurrency to lose 31% of its value in the weeks following the dump, and more than six months to recover.
The current whale activity shares a few similarities: massive volume, long dormancy, and action NEAR an ATH, fueling speculation that it could trigger a similar correction.
“So far, only a portion of the holdings has been sold,” wrote OnChainSchool. “Whether the outcome will be similar this time remains uncertain, but the parallels are worth noting.”
Market Jitters vs. Historical Context
However, there are also a few key differences. For one, this sell-off is being managed professionally via Galaxy Digital, suggesting a more controlled distribution. Furthermore, according to investor Daan crypto Trades, such events often generate exaggerated fears that tend to dissipate way before the actual selling concludes.
The trader also referenced the sale last summer by the German government of 50,000 BTC for about $2.5 billion, where the market absorbed the pressure over time. While the historic wallet’s potential overhang is up to 80,000 BTC, valued at around $9.46 billion, the institutional and OTC demand right now is arguably stronger than it was last year, giving a glimmer of hope that the supply can be absorbed without ruffling the market too much.
Meanwhile, Bitcoin, which celebrated a new all-time high of over $123,000 on Monday, per CoinMarketCap, has retraced a bit. At the time of this writing, the asset was trading around $117,500, reflecting a 4% since the peak. The dip interrupts a commendable weekly performance that saw its value jump 7.5% and a monthly gain of more than 11%.
