a PeckSchild, a renowned blockchain security company, has identified a significant transaction on a Bitcoin address that had been inactive for three years. Second alert of the company, the address 1LH1dY…ztTz transferred approximately 5,000 bitcoins, equivalent to approximately $140 million, to three different addresses.
Because these types of moves, which are typically made by individuals or entities holding large amounts of cryptocurrencies – called “whales” – can influence prices, the community pays close attention to try to predict market movements.
‘Whales’ have the power to create volatility simply by the scale of their activities. A single transaction, depending on its size and context, can cause downward or upward movements in the price of an asset.
#PeckShieldAlert The sleeping one $BTC address 1LH1dY…ztTz (which has been inactive for 3 years) transferred ~5K $BTC (~$140 million) to 3 addresses
bc1q5rpq5wppf5tua2yd97nscp8gpz8fq0w740g22c
34aed6ryXt6ZCHv6k2WPiyy7ap5VbyHr8D… pic.twitter.com/kLj1SeEQSh
— PeckShieldAlert (@PeckShieldAlert) October 8, 2023
Why did the whale decide to move his bitcoins?
Since the ongoing conflict between Israel and Gaza has had a neutral impact on the cryptocurrency market, some may be anticipating downward moves.
On the one hand, the war led to a small increase in market volatility, with the prices of many cryptocurrencies fluctuating. On the other hand, the war also highlighted Bitcoin’s potential as a safe haven and means of transferring value in times of conflict.
In recent years, the movements of ‘whales’ have been closely monitored given the potential impact they can have on the market. It is common for traders and analysts to use this information to predict short- and medium-term trends.
However, it is important to emphasize that not every ‘whale’ move results in a price change. Often these significant transfers are simply reallocations between portfolios owned by the same holder, or moves for security reasons.
It is still unclear what the motivation behind this recent transaction from the sleeping address is. The decentralized nature of cryptocurrencies guarantees the privacy of transactions, making it difficult to determine the exact purpose without more information.
Nevertheless, the ongoing conflict between Israel and the terrorist group Hamas could be an explanation, with the whale trying to prepare for a possible cryptocurrency crash.
One of the reasons why Bitcoin has not reacted yet could be that the conflict started over the weekend, when brokers had less volume.
Depending on how long the conflict lasts, it could impact finances and Bitcoin could react, either down or up, but what will happen remains to be seen.
Source: Live Coins

Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.