[Latest Update] Why a Billion Worth in Bitcoin is Blockchaining: BTC Owner Transfers ~$100M to Exchanges In 10 Days


$1 Billion of a Early-Day Bitcoiners BTC are Dancing on the Blockchain For the First Time in Years: Activity is Picking up in the 10 Days, Crypto Rumors Swirling

When we first broke the story yesterday, riding the crypto coattails of a redditor who has saddled the responsibility of investing how and why $1 Billion worth of Bitcoins is being moved to Bitfinex and Binance, with an unknown owner transferring $100M+ to Bitfinex and Binance within 10 Days, we were a bit more into breaking out the story vs breaking down the story.

Now, we have had a little more time and attention to examine the BTC blockchain (the beauty of DLT right?) and have a few more updates to include for you following along the storyline which was believe to evolve from a Silk Road related wallet.

The addresses, which have been dormant since 2014 contains huge amount of BTC (and obviously Bitcoin Cash and all other honorable forks), have been moving actively in the last 7 days for the first time in years. The Bitfinex user wallet was sent 11,114 BTC and the user's Binance wallet was sent 4,421 BTC as you can see the list of transactions one by one.

The wallets which has not been used until recently, had last movement some 4 years and 5 months old (March 9th, 2014) ago, before witnessing fund transfers again. The redditor blockchain investigator also noticed the owner of the wallets is moving the funds into his subwallets as well. The original wallet has 111,114.62 BTC / BCH , which is currently valuated ~ $844M (without taking in account other #Bitcoin forks), is what initially revealed his findings.

According to the findings the funds have been divided over time to 60,000 coins then to 30,000 / 20,000 / 10,000 / 5,000 / 500 and now 100 coins.

It is not clear if the owner of the coins intends selling, since the funds have been HODLed since 2014.

However, the self-taught investor alleged that BTC price has started pumping the moment the funds are being transferred to Bitfinex and Binance wallets gradually.

One of the account has 100BTC since March 2014, but the funds were transferred into another account on the 30th of August 2018.

Some of the redditors wondered why the investigator decided to follow how the funds are being moved, what is clear to many of them is that the Reddit account was created three days ago, and purposely to reveal the somewhat unknown findings.

There was talks of it possibly being one of Craig Wright's wallets as well with his lawsuit between Dave Kleiman's family and his in the creation of making bitcoin together – read here as well – but it is not clear whether this is his or not – but we do have a very detailed breakdown of Satoshi's early day mining that can give more insight here.

Aside from Silk Road, Craig Wright or any other assumptions – Mt. Gox was also brought into the conversation as they did just recently announce a return process to customers. But the redditor researcher concluded the mixing methodology used was not something someone should expect to do if it was an out in the open transfer vs all of the security measures practiced in hiding the transfers.

As the redditor beautifully illustrated each graph of the bitcoins and wallets being transfered on the blockchain, he concluded these three things about the wallet's owner:

1) owner is very active in splitting up the 111,114 BTC in the last few weeks

2) Funds are being sold on Binance already

3) doing everything to protect the btc transfer privacy, using mixers and ninja hiding to make difficult as possible to track and monitor the movements via block explorers.

As the next question, it begs to know what all these coins are doing being active – will they sell or will it impact the market in a variety of ways?

What do you guys think of this blockchain insight and data analysis? Pretty fascinating, given the amount in which are being dealt with and the real implications it could have on the entire market.

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