Bitcoin Whales Move $760M In Old Coins As Rally Stalls
On-chain data reveals that Bitcoin whales, who have been holding their tokens for between three and five years, have recently become active, moving a significant amount of tokens. This activity has been tracked using the "Spent Output Age Bands" (SOAB) indicator, which monitors transaction activity within specific age bands. An age band represents the time range during which coins were last transacted on the network. For instance, the 1 day to 1 week band includes coins that were last moved between 1 day and 1 week ago.
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When addresses within a particular age band make a transaction, the corresponding SOAB registers a spike. In this context, the focus is on the 3- to 5-year-old group. The chart shared by the analyst shows a recent spike in the SOAB for this age band, indicating that investors have moved a substantial amount of old coins. The total value of the transactions involving 8,003 BTC is worth more than $760 million in US dollars.
Historically, the longer an investor holds onto their coins, the less likely they are to sell them in the future. This means that as holders mature into older age bands, they become more resolute. The HODLers of the market, who hold their coins for more than 155 days, are known as long-term holders. Considering that the age band from the chart involves coins older than three years, the investors holding them must be stalwart even by HODLer standards.
The movement from the 3-year to the 5-year age band has come as BTC’s recovery rally has stalled into flat price action. It’s possible that these whales think this may be their best chance of getting out with their profits, so they have decided to sell. The SOAB of this Bitcoin group and other old ones can now be worth keeping an eye on, to see if more of the resolute hands join in on the profit-taking.
