A massive transfer of Bitcoin worth $8.6 billion, distributed across eight wallets that have remained untouched for over 14 years, has sparked a wave of speculation within the cryptocurrency community.
The transfer process, which took place on July 4, involved moving 80,009 Bitcoins. This raised concerns about the potential impact on the market, the possibility of a governmental settlement agreement, or even a hack.
Arkham suggests that the whale movement was a wallet update.
Arkham Intelligence, a blockchain analytics firm, believes that the transfer may have been due to a wallet update, rather than liquidation.
In a statement released on July 5, Arkham denied the speculation of a sell-off, clarifying that the assets were moved from old addresses 1- to modern bc1q-SegWit addresses. This transition improves transaction efficiency and reduces network fees.
The involved tokens were initially deposited between April and May 2011, a period when Bitcoin was still trading below $1.
And now, after a decade, Arkham sees the distribution of funds across eight wallets as a technical reorganization rather than a market-moving event.
It is noteworthy that the price of Bitcoin remained stable after the transfers, further supporting Arkham's interpretation.
The cryptocurrency community raises other theories.
While Arkham proposed a benign explanation, others in the sector raised more provocative possibilities. Cathy Wood, the CEO of ARK Invest, questioned the nature of these transactions and suggested that this move could be linked to a governmental settlement agreement.
Wood noted that the rapid stability of the Bitcoin market might indicate that the deal was part of a larger institutional movement.
The Bitcoin market stabilized rapidly. Could this block be part of a governmental settlement agreement? Has it now become part of the government's treasury? Wood wondered.
Meanwhile, Connor Grogan, the CEO of Coinbase, suggested another theory regarding these transfers, indicating the possibility of a hack.
Notably, one of the wallets sent a small Bitcoin Cash transaction 14 hours prior to the larger Bitcoin transfer. He stated that this is a potential indicator of a separate key test before the larger transactions.
There is a possibility that the owner was testing the private key unnoticed, as Bitcoin Cash is not closely monitored by whale tracking services. This leads me to believe that other Bitcoin Cash wallets were not touched at all; why not scan those as well?
However, Grogan confirmed that his theory is still speculative, but he noted that if confirmed, it could represent the largest theft in cryptocurrency history.
In addition to the mystery, 10x Research noted that these wallets may be linked to the famous investor Roger Ver.
According to the company, the timing of this deal aligns with the beginning of Roger Ver's involvement in Bitcoin. It also pointed to his recent release from custody as another indicator of possible involvement with these assets.
He was released on bail from a Spanish prison on June 5, and that Bitcoin was last moved in May 2011, while Roger became involved in Bitcoin in February 2011. He is likely to have billions in Bitcoin," according to a 10x Research report.
And although there is no direct evidence confirming their involvement, this coincidence has stirred further controversy within the community.
The true reason behind the transfer of $8.6 billion remains unclear so far. However, its reactivation has sparked widespread debate in the sector.