40,000 BTC Reactivated After 14 Years, Institutions Pour Billions Into Crypto

In a remarkable on-chain event, four Bitcoin wallets, each holding 10,000 BTC, were reactivated after over 14 years of dormancy. These wallets, which were likely mined or acquired during Bitcoin's nascent stages, collectively held around $30,800 in 2011, a value that has since surged to over $4.36 billion. The reactivation of these wallets, totaling 40,000 BTC, has ignited significant interest and speculation within the crypto community. The value of Bitcoin at the time these wallets were created was approximately $0.77 per coin, whereas the current value is around $109,000 per coin.

The sudden reactivation of such a substantial amount of dormant Bitcoin has led to varied interpretations among market observers. Some view this as a potential reshuffling by early adopters, while others are concerned about a possible major sell-off. The scale of this reactivation in a single day is unprecedented and has garnered considerable attention in the crypto space.

Simultaneously, institutional confidence in Bitcoin has been reinforced by substantial purchases from prominent financial firms. BlackRock, Fidelity, and ARK Invest have collectively acquired $575.8 million in Bitcoin. This institutional buying is seen as a strong endorsement of the cryptocurrency, driven by factors such as ETF-driven accumulation, optimism over regulatory clarity, and a growing belief that Bitcoin could reach $120,000 in the coming weeks. The contrast between the institutional buying and the reactivation of dormant whale wallets has fueled a wave of bullish speculation in the market.

In addition to Bitcoin, institutions have also shown interest in Ethereum. BlackRock and Fidelity have acquired 57,700 ETH, valued at approximately $148.5 million. This move follows recent Ethereum ETF approvals and staking upgrades, with traders betting that the value of ETH could soon reach $10,000. The renewed institutional trust in Ethereum, coupled with Layer-2 growth, has contributed to this optimistic outlook.

Moreover, Tether has minted an additional $1 billion in USDT, adding liquidity to the markets. Historically, such minting events have correlated with bullish market shifts, and this latest minting is likely to be deployed on exchanges and into DeFi protocols. Market watchers view this as another signal of rising demand across the board, further supporting the bullish sentiment in the crypto market.

In the United States, Senator Cynthia Lummis has introduced legislation to eliminate capital gains tax for crypto transactions under $300. This move aims to encourage the use of crypto as a day-to-day payment tool and lower barriers to entry for retail crypto users. If passed, it could significantly boost retail crypto adoption across the United States.

Additionally, President Donald Trump’s wide-reaching economic bill has passed the House. The legislation includes pro-crypto regulatory reforms, tax simplification for digital assets, and measures to limit Federal Reserve authority. The bill is being celebrated in crypto circles as a turning point in U.S. digital asset policy.

With the reactivation of 40,000 BTC after 14+ years, institutions pouring billions into BTC and ETH, Tether printing fresh liquidity, and pro-crypto legislation gaining traction, July 2025 may go down as the spark that ignited the next crypto supercycle.