In a remarkable turn of events, Bitcoin that had been dormant for over a decade suddenly came to life, as 139 Bitcoin from address 1H1Ab6 migrated to a newly created Segwit address on Thursday. The original owner, who had held onto the coins for nearly twelve years, had initially purchased them in June 2011 for just over USD 2,250. Today, their value has skyrocketed to a staggering USD 3.5 million, thanks to Bitcoin’s current price surge.
These coins are part of what is commonly referred to as the Ancient Supply, denoting Bitcoin acquired at least seven years ago, although some analysts consider a five-year threshold. This year, there has been a notable increase in activity involving ancient Bitcoin, with 3,200 BTC being revived, 1,100 of which were acquired prior to 2013, as reported by Glassnode.
The market was captivated by the sale of 429 Bitcoins from an incredibly old wallet, created in October 2010 when Bitcoin’s price was a mere USD 0.19 USD. This sale occurred in March of last year, while in February 2023, another address from the early days of Satoshi’s era transferred 412 Bitcoin worth an astonishing USD 9.6 million, after more than a decade of inactivity.
Determining the motives behind these movements is challenging, as it is unclear whether the owners’ convictions have changed or if the transactions are simply a matter of personal custodial practice. Due to Bitcoin’s pseudonymous nature, identifying the owners or their intentions, especially when considering Satoshi’s stash, which is rumored to comprise 5% of the total supply, remains elusive.
Nonetheless, Glassnode provides some insights, suggesting that dormant coins are increasingly less likely to be sold after 155 days. However, when such sales do occur, they could indicate a shift in conviction. A recent newsletter from the analytics provider revealed that the number of Bitcoin held for the long term is growing by 100,000 BTC per month.
Despite the recent activity and sporadic spending of satoshi-era coins, a substantial portion of Bitcoin’s ancient supply—4.25 million out of a total of 356,000—remains lost, leaving many to believe that they may never be recovered or utilized again.