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Two long-dormant Bitcoin wallets from the early “Satoshi era” have recently come back to life, moving a combined $325 million worth of Bitcoin after over a decade of inactivity. These movements have caught the attention of the crypto community, especially as they coincide with a major U.S. Federal Reserve interest rate decision.

Details of the Dormant Bitcoin Transfers

The first wallet made a significant transfer of 2,343 BTC, valued at approximately $222.2 million, to a new wallet after being inactive for 10.5 years. Historical data reveals that this wallet originally acquired 2,187 BTC back in July 2013 for just $185,850, at an average price of $85 per coin.

Similarly, the second wallet became active after more than 11 years, transferring 1,079 BTC worth roughly $102.5 million. This wallet’s Bitcoin holdings were accumulated during the same mid-2013 period for an estimated $91,713, also at an average price of $85 per coin.

Possible Motivations Behind the Transfers

While the exact reasons behind these transactions are unclear, several factors could be at play:

  • Recovered private keys from previously inaccessible wallets
  • Changes in ownership due to inheritance or sale
  • Long-term holders preparing to liquidate their positions after years of holding

The timing of these movements is particularly noteworthy, as they occur just before the Federal Reserve’s scheduled interest rate announcement on May 7, 2025.

Federal Reserve Interest Rate Decision and Market Implications

The Federal Reserve is widely anticipated to maintain its current interest rate range of 4.25% to 4.50%, adopting a cautious “wait-and-see” approach amid ongoing economic uncertainties. These include the potential effects of recent U.S. tariff policies.

These large Bitcoin transfers, occurring so close to the Fed’s announcement, suggest that major players may be positioning themselves ahead of potential market volatility. Historically, interest rate decisions have had a significant impact on both traditional financial markets and cryptocurrencies.

Bitcoin’s Current Market Activity

Bitcoin has been trading within a narrow range, consolidating between $94,000 and $95,000 after a recent pullback from $97,700 on May 2. This consolidation phase comes as on-chain data indicates a highly profitable market environment.

According to blockchain analytics, approximately 88% of Bitcoin’s circulating supply is currently in profit. Losses are primarily concentrated among investors who purchased Bitcoin between $95,000 and $100,000.

“About 88% of Bitcoin’s circulating supply is currently in profit, reflecting a strong market environment.”

On-Chain Indicators to Watch

Several key on-chain metrics provide insights into the current market dynamics:

  • MVRV Ratio: Bitcoin’s MVRV Ratio has returned to its long-term mean of 1.74, a level historically associated with consolidation phases and investor reset periods.
  • Realized Profit/Loss Ratio: The RPLR metric has rebounded above 1.0, signaling heightened profit realization as sentiment improves.

While these indicators often suggest bullish momentum, the increased profit realization could introduce short-term selling pressure, potentially impacting Bitcoin’s price.

Bitcoin’s Current Price

At the time of writing, Bitcoin is trading at $94,175 per coin. The cryptocurrency market remains closely watched as traders and investors prepare for potential price movements in response to macroeconomic developments.

Disclosure: This article is for educational purposes only and does not constitute investment advice. Always conduct your own research before making financial decisions.

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