Rare ‘Satoshi-Era’ Bitcoin On the Move as BTC Price Surges

A large amount of bitcoin mined in the early days of the network was recently transferred to trading platforms and custodians, marking a rare movement of “Satoshi-era” coins. Over 1,000 bitcoins from a single early miner were consolidated into a wallet holding 1,028 BTC now worth $40 million.

Keypoints

• Over 1,000 bitcoins from an early miner were moved to trading desks and custodians on Dec 4th
• These bitcoins were mined between Aug-Nov 2010 and cost an estimated total of $100 to mine
• The bitcoins were consolidated into a wallet that now holds 1,028 BTC worth $40 million
• It’s speculated the early miner sold the 1,000 BTC to an OTC or custodian service
• This activity comes as bitcoin prices have doubled in 2023 amid optimism for wider adoption

The coins were originally mined between August and November 2010, when Bitcoin was still in its infancy. With far less competition than today, the entire batch likely cost only around $100 to mine. After sitting dormant for over a decade, the coins were moved on December 4th 2022.

It’s speculated that the early miner sold the coins to over-the-counter (OTC) trading desks or institutional custodians that serve large investors. This is based on the transaction patterns of the receiving addresses. OTC desks allow major trades to occur quickly outside of exchanges, while custodians hold assets for clients.

This activity comes as bitcoin prices have more than doubled so far in 2023, renewing optimism for wider adoption. Prices surged in part based on anticipation that the US may finally approve a spot bitcoin ETF this year. Other factors include traders betting on interest rate cuts boosting risky assets like crypto, and more bitcoin-friendly political leaders taking power around the world.

As the longest-running blockchain with the highest market cap, Bitcoin continues to see surges of interest after major price corrections. Major Wall Street institutions have also been embracing crypto more widely in recent months. If prices can maintain these new levels, more early miners may choose to realize their still-massive gains.