Bitcoin’s recent price momentum has encountered a pause following the latest US Consumer Price Index (CPI) release, which showed inflation rising to 2.7% in June. The inflation increase appears to have affected investor sentiment. After reaching a new high above $123,000 on Monday, Bitcoin has since declined by roughly 5.4% from that peak, with its price currently trading just above $116,000. The broader crypto market also reacted to the news, with the global crypto market cap valuation dropping by nearly 7% in the past day amid renewed uncertainty about future interest rate policy. While Bitcoin has exhibited a strong uptrend in recent weeks, the latest pullback introduces short-term volatility that analysts are watching closely. One particularly notable development occurred on-chain: a transfer of 10,000 BTC, valued at roughly $1.2 billion, from a dormant address last active over a decade ago. Related Reading: The Bitcoin Liquidity Supercycle Has Just Begun, Says Hedge Fund CEO Historic Bitcoin Transfer Raises Eyebrows, but No Signs of Exchange Activity CryptoQuant analyst Carmelo Alemán shared insights into the large transaction in a recent post titled “10,000 Historic BTC Move On-Chain.” According to Alemán, the transaction occurred on July 14 at 16:17 UTC, moving 10,000 BTC from address ‘bc1q84…7ef6k ‘ to ‘bc1qmu….8v2p.’ These coins had not moved in over 10 years, indicating they likely originated from early miners during Bitcoin’s earliest phases when the block reward was 50 BTC. Alemán noted that such old unspent transaction outputs (UTXOs) often trigger concern about potential sell-offs, but in this case, further analysis suggests a more neutral interpretation. The movement of old coins can occur for various reasons, including UTXO consolidation, wallet upgrades, or potential sales. Alemán explained that this transfer displayed characteristics consistent with consolidation for efficiency and security purposes. For example, the transaction used 16 different inputs, which can help reduce future transaction fees. Additionally, no corresponding inflow to centralized exchanges (CEXs) was detected, typically a key signal when holders intend to liquidate. The analyst also pointed out that two small test transactions were sent to the receiving address before the full transfer. These included a 0.00089 BTC and a 1 BTC transaction, commonly used to verify wallet accessibility before moving a large sum. Interestingly, two hours after the initial transaction, the same destination wallet received another transfer of 10,009 BTC, bringing the total to more than 20,000 BTC moved in the span of a few hours. Implications for Market Behavior and On-Chain Trends While the transaction did not lead to immediate market selling, it has added to ongoing discussions about the role of long-term holders in Bitcoin’s supply dynamics. Large transfers from early addresses are rare and often interpreted as strategic reorganization of funds. Alemán noted that the absence of exchange-related activity makes it unlikely that the coins are being liquidated in the short term. Related Reading: Spot Volume Drop on Binance Preceded Bitcoin’s Price Surge, Data Shows However, he cautioned that such movements warrant continued monitoring, particularly if additional large transfers follow or if the recipient wallet later transacts with exchanges. Featured image created with DALL-E, Chart from TradingView