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A quartet of the biggest wallets on the Bitcoin blockchain have been moving around some serious amounts of BTC in the last few hours. 

Earlier this evening, at around 7pm (UK GMT), one of the richest wallets on the Bitcoin blockchain suddenly sprang back into action after over four years of inactivity.

The address, 1PnMfRF2enSZnR6JSexxBHuQnxG8Vo5FVK, was well-monitored as the #9 ranked account on the Bitcoin Rich List and, according to data from blockchain.com had been largely dormant for over four years. So, as you’d imagine, the clearance of the account and the movement of 66,000+ BTC (worth over $260m) immediately caused eyes to turn towards it.

Then, one hour later, the 10th ranked wallet – 1AhTjUMztCihiTyA4K6E3QEpobjWLwKhkR – sprang into action after a similar period of inactivity.

Were that not enough big moves for one day, at around 10pm UK time tonight, a very similar thing happened again. This time it was the – you guessed it – #11 wallet under the microscope.

And then – for now at least – the action closed out in the last few minutes with another wallet worth approximately half of the first two (ranked at #30), also on the move.

All-in-all that’s an eye-watering 232,024 bitcoins that have shifted wallets in the last few hours from those four addresses alone. At a market value of over $900m, based on CryptoCompare’s current index price for Bitcoin ($3,933), that’s a volume equal to roughly half of the total amount of BTC traded across the exchanges monitored by the site in the last 24hrs.

With that amount of Bitcoin in the wild, and prices already suffering in the last few weeks, you’d probably be entitled to wonder what was going on. We’ll, what happened to the Bitcoin after the initial move probably gives us a hint.

While the initial hot-take reaction to the first move was to fear a dump, and further depression of the bitcoin price, the second move highlighted that both had tranches of coins had immediately been subdivided into smaller equally valued caches in sub-wallets after being transferred.

This hinted that it was likely to be some kind of tidying up exercise by a large exchange, and that the coins had probably been bought back from their cold storage to be rearranged in such a way as to make them more secure or accessible in the future. As some Twitter commenters also pointed out, the move took the large bags of bitcoin from legacy wallet addresses to SegWit addresses.

This possibility was somewhat supported by others who pointed out Coinbase’s warning that it would be undertaking maintenance “that may cause movements on all Coinbase-supported blockchains”.

Right now, this seems to be the most plausible explanation – though no warnings of large movements have been posted on the pages Coinbase’s blog advised users to watch. So whether or not those coins go back to being dormant, remains to be seen.

 

(Excerpt) Read more Here | 2018-12-05 00:17:58

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