Issue 143: Learn About Smart Contracts
July 15th, 2021
Weekly Market Recap
Analysis: Crypto continues to sell off across the board, with Bitcoin dipping below $40K CAD for the first time since June 22nd, just over 3 weeks. A recent report from CryptoCompare reports that volumes traded diminished by at least 40% month-on-month, with spot and derivatives trading both seeing sharp declines.
Big Story: After Nearly 10 Years, a $26M Crypto Wallet Is Back
A bitcoin address that has not been active since June 2012 has just come out of dormancy. The Twitter bot Whale Alert spotted 640 of the 791 bitcoins moved to an unknown address. You can see this transaction here. Looking back one year to 2011, 791 bitcoins were worth approximately 0.30 each for a total of $237.30. In just one year, this wallet was worth $4,168.57, a promising investment and now a million-dollar fortune.
So, what does this mean for other bitcoin investors? Are the actions of bitcoin whales a sign of the times to come?
Satoshi Era Wallets Reborn
Any wallet dating back to the time before mysterious bitcoin creator Satoshi Nakamoto disappeared can be referred to as a Satoshi Era wallet. Many of these wallets are still in existence, only recently breaking headlines. Back in March of this year, the same Twitter bot noted 5000 bitcoins were transferred from a wallet that was inactive for seven years. And another occurred just a few weeks before, where 100 million dollars worth of bitcoin was moved.
It’s true many of us who bought at a higher price, look back and think if only we had bought sooner. But, if we did, would we have sold out? The hodl or hold on for dear life strategy has gained popularity for encouraging people to not buy or sell on impulse. Instead, encouraging long-term holds on risky investments. Although this strategy is not guaranteed, it has proven successful for many.
If these whales are coming out of hiding, does this mean bitcoin is going to crash? Not necessarily. Looking back at our earlier numbers, if bitcoin was purchased at $5 for a total wallet worth about $4000, an increase to $26 million is a 616418% gain, one that is not commonly seen in the marketplace. Therefore, even if the investor believed there was still growth potential, cashing out now is a secure option, and $26 million is nothing to sneeze at.Many analysts remain bullish towards bitcoin, especially with rumours of Apple buying some digital currency for themselves. Although there is a lot of speculation, there is no doubt that Bitcoin has given us food for thought in the world of finance and ignited a spark that continues to burn.
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