Dear followers, back to business today. I am pretty sure you heard about the move of 50 BTC from a 2009 wallet and you are wondering why the market is reacting with such a quick downtrend?
Let me give you a perspective on this subject.
Until now, those BTC were stored in a wallet from February 2009, in the first month of BITCOIN creation. When you see the price of one BTC at 9,000$ it is difficult to imagine that someone who almost paid nothing in 2009 hold his BITCOIN so long without moving or spending it.
This is the main reason why those BITCOIN are usually considered as LOST. In fact over the years many people have lost their private key and therefore cannot access anymore their BITCOIN
Today, when you see those old BTC moving, you can suspect that maybe the owner of this move has many more BITCOIN at disposal across different addresses.
Understand but why the market is afraid?
Well, as I explained in an earlier post, in 2020, BITCOIN is no longer a monetary system neither a store of value but it is a financial instrument just like equities.
All the traditional market products have been implemented on BITCOIN overtime such as derivative products with leverage and so on…
If it was a monetary system, it would be great to see potential new coins coming in circulation as the more the money circulate the better the economy is and therefore the better the BITCOIN would play his role.
Unfortunately, as BITCOIN is not a monetary system when you discover suddenly that someone may come on the market with thousands of fresh bitcoin to sell than you are just afraid! If someone sell 50 BTC it is not a problem but if someone has access to thousands of BITCOIN from that same period and sell it, than there will be not enough buyers on the market and the price will decrease. In addition with the derivative products, some people will by against BITCOIN accelerating the fall.
Is it a move from Satoshi Nakamoto? I don’t know but if it is, I would not be surprise to see him selling all his Bitcoin for another crypto-currency more aligned with the initial vision of a truly decentralized monetary system.
You know which coin I am thinking about right?