A $500 Million Bitcoin Whale Surfaces After 12 Years, Sells Millions with 31,250% Profit

A long-time dormant Bitcoin whale, identified as "5K BTC OG," has begun selling its significant holdings. Originally acquiring 5,000 BTC in 2012 for only $1.66 million, this wallet now holds assets worth nearly $500 million. The entity has already sold half of its stash, raising concerns within the cryptocurrency community.

Key Takeaways

A Bitcoin wallet known as "5K BTC OG" has started selling after 12 years.
The wallet initially received 5,000 BTC in 2012 when Bitcoin's price was $332.
It has sold 2,500 BTC since December 4, 2024, netting approximately $265 million.
Transactions are methodical, with the owner spreading sales across multiple trades to avoid market disruptions.
Current holdings still exceed 2,500 BTC, valued at about $237.5 million.
The whale's total profits exceed $500 million, raising questions about future market impacts.

Bitcoin Whale Activity: What’s Happening?

A Bitcoin whale that has been inactive for over a decade has come back into the spotlight by starting to sell its considerable holdings. The wallet, referred to by Arkham as "5K BTC OG," originally received 5,000 BTC in 2012 when the price was only $332, amounting to a total investment of just $1.66 million. Fast forward to today, and that investment is now worth almost half a billion dollars. Recent activities show that the entity has already sold off half of its holdings.

Data from Lookonchain and Arkham indicates that selling commenced on December 4, 2024. Since that date, the wallet has offloaded 2,500 BTC through a series of transactions, earning about $265 million with an average selling price of $106,164 per Bitcoin. Just hours ago, an additional 500 BTC was transferred to Binance, valued at approximately $47.77 million, marking the latest in a series of exits from this long-held stash.

Source: Arkham

Strategic Selling

The selling pattern appears to be well thought out. Instead of liquidating all assets at once, the whale has strategically moved between 250 and 500 BTC per transaction, distributing the outflows over at least 10 transfers to Binance within the last five months. This tactic seems aimed at blending into larger liquidity zones to minimize impact on the market and avoid detection by automated market makers.

Currently, the wallet still holds 2,500 BTC, valued at around $237.5 million, which could potentially hit the market next. With Bitcoin trading just under $100,000, a significant sale from such long-term holders could further pressure the market, plunging it deeper into a congested resistance area.

The total profits amassed by this whale now exceed $500 million, categorizing it as one of the most lucrative exit strategies in Bitcoin's history. While long-term investors commend the "diamond hands" for their steadfastness, many traders are left anxious about the implications of these coins becoming active and liquid on the market once again. With half of the stash already sold, the critical question remains: Will the next sale of 500 BTC coincide with a price pullback at $100,000, or will the market absorb it all at once?