Bitcoin News Today: Historic 80000 Bitcoin Move Sparks Speculation Tied to 2011 MyBitcoin Scandal

A historic movement of 80,000 Bitcoin—valued at over $9 billion—has sparked speculation about its origins, with some analysts linking it to the 2011 MyBitcoin wallet scandal. Galaxy Digital, which facilitated the transaction, described it as part of a legacy planning strategy for a "Satoshi-era" investor. However, Ki Young Ju, CEO of blockchain analytics firm CryptoQuant, suggested the coins could be connected to dormant wallets tied to MyBitcoin, a defunct crypto custodial service hacked in 2011. The wallets involved in the recent transfer had been inactive since April 2011, just months before MyBitcoin’s collapse [1].

The potential link to the 2011 incident raises questions about the coins’ ownership. Ju theorized that the funds could have been controlled by either the hacker who breached MyBitcoin or the platform’s founder, Tom Williams, who disappeared shortly after the attack [1]. Galaxy Digital has not publicly addressed the provenance of the assets, instead emphasizing the transaction’s role in estate planning for an early Bitcoin adopter. This ambiguity has intensified scrutiny of the firm’s due diligence process, particularly regarding the source of the transferred funds [1].

Separately, a 14.5-year-old Bitcoin wallet holding 3,962 BTC—worth $443 million—reactivated in early 2025, reigniting interest in the 2011 MyBitcoin scandal. The wallet, first funded in January 2011, is among the oldest surviving Bitcoin holdings and may hold stolen coins from the hack. Analysts warn that its liquidation could temporarily depress Bitcoin’s price by increasing short-term supply pressure, though the impact will depend on the speed of the sale [1]. Large wallets often remain dormant for years, and sudden movements can trigger volatility even during gradual sales.

The timing of these events coincides with Bitcoin’s record-high price of $112,000 in July 2025, fueled by institutional demand for spot Bitcoin ETFs [4]. Citigroup analysts project a base-case price of $135,000 by year-end if ETF inflows maintain a moderate pace of $15 billion, with a more aggressive scenario anticipating $200,000 if institutional buying accelerates. However, a slowdown in ETF activity could trigger a downturn, though the bank did not quantify potential losses [2]. Over 40% of Bitcoin’s price movement in 2025 has been attributed to ETF-related activity, overshadowing traditional metrics like network usage or mining difficulty [2].

The 2011 MyBitcoin scandal, which predated modern ETFs, exposed vulnerabilities in early custody solutions and shaped regulatory scrutiny. Today, similar principles of institutional trust and security underpin Bitcoin ETF adoption [1]. Market participants are monitoring the 3,962 BTC wallet to determine whether the seller prioritizes discretion or rapid liquidation. Historical patterns suggest large holders often employ multi-stage sales to minimize price slippage, though the pace will depend on the seller’s financial needs and market conditions [1].

The reactivation of dormant wallets highlights the enduring mystery surrounding pre-2017 Bitcoin holdings, many of which remain offline. While thousands of such wallets occasionally awaken without triggering significant price shifts, the size of the 3,962 BTC wallet ensures it will remain a focal point for traders and analysts [1]. The broader Bitcoin ecosystem continues to evolve, with ETF inflows and macroeconomic factors like inflation and interest rates playing increasingly dominant roles in price dynamics [2][4].

Sources:

[1] Coindoo, [https://coindoo.com/record-breaking-bitcoin-sale-may-be-tied-to-2011-wallet-scandal/](https://coindoo.com/record-breaking-bitcoin-sale-may-be-tied-to-2011-wallet-scandal/)

[2] Coindoo, [https://coindoo.com/mega-bullish-bitcoin-price-prediction-from-top-global-bank/](https://coindoo.com/mega-bullish-bitcoin-price-prediction-from-top-global-bank/)

[4] MLQ.ai, [https://mlq.ai/news/](https://mlq.ai/news/)