A massive transfer of Bitcoin involving $8.6 billion in BTC, distributed across eight wallets untouched for over 14 years, generated a wave of speculation in the crypto community.
The transfer, which occurred on July 4, involved the movement of 80,009 BTC. This raised concerns about the potential impact on the market, possibilities of a governmental agreement, or even a hack.
Arkham Intelligence, an on-chain analysis firm, believes that the transfer was likely triggered by a wallet update, not a liquidation.
In a statement on July 5, Arkham dismissed speculation of a sale, clarifying that assets were moved from legacy addresses 1- to modern addresses bc1q- SegWit. This transition improves transaction efficiency and reduces network fees.
Whale Bitcoin transactions of $8.6 billion. Source: Arkham Intelligence
The coins in question were initially deposited between April and May 2011, a period when Bitcoin was still trading below $1.
Now, more than a decade later, Arkham sees the distribution of funds across eight wallets as a technical realignment, rather than a market-moving event.
In fact, the price of Bitcoin remained stable after the transfers, further supporting Arkham's interpretation.
Other theories surrounding the transactions
While Arkham pointed to a benign explanation, others in the industry raised more provocative possibilities.
Cathie Wood, CEO of Ark Invest, questioned the nature of the transactions and suggested that the movement could be linked to a governmental agreement.
It highlighted that the rapid stabilization of the Bitcoin market may indicate that the transaction was part of a larger institutional movement.
"The Bitcoin market stabilized quickly, so could this block be part of a governmental agreement? Now it is part of the government's Treasury," Wood questioned.
Meanwhile, Coinbase executive Conor Grogan presented another theory about these transfers, suggesting the possibility of a hack.
He noted that one of the wallets sent a small Bitcoin Cash transaction 14 hours before the largest Bitcoin transfer. According to him, this is a possible sign of a discreet key test before the larger transactions.
"There is a possibility that the owner was testing the private key in a way that went unnoticed, as BCH is not heavily monitored by whale watching services. What makes me say this is that the other BCH wallets were untouched; why didn’t they sweep those as well?" he wrote.
However, Grogan emphasized that his theory remains speculative, but noted that if confirmed, it could mark the largest theft in crypto history.
Adding to the mystery, 10x Research suggested that the wallets may be connected to early Bitcoin investor Roger Ver.
According to the firm, speculators noted that the timing of the transaction coincides with Ver's initial involvement in Bitcoin. They also pointed out his recent release from detention as another indication of his possible involvement with the assets.
"He was released on bail from a Spanish prison on June 5, and these Bitcoins were last moved in May 2011, while Roger entered Bitcoin in February 2011. He certainly will have billions of dollars in Bitcoins," 10x Research stated.
Although no direct evidence confirms his involvement, the coincidence further fueled the debate within the community.
The true reason behind the $8.6 billion transfer remains uncertain for now. However, it is certain that its resurgence has sparked renewed conversations in the industry.
The article '$8.6 billion Transfer in Bitcoin Raises Suspicions' was first seen on BeInCrypto Brazil.
