$8.6 billion in BTC on the move in likely Bitcoin whale address upgrade

According to blockchain intelligence firm Arkham, the Bitcoin whale who recently moved $8.6 billion in BTC for the first time in over 14 years likely has no intention to sell. The firm believes the whale transferred their assets for an address upgrade.

In an X post , the firm said, “Yesterday’s $8 billion transfers were possibly related to address upgrades, moving from 1-addresses to bc1q-addresses. There are no indications that this whale is selling Bitcoin.”

Whale transferred assets due to transition to a Native SegWit address

Arkham had earlier revealed that a BTC whale executed eight transfers to relocate roughly 80,000 BTC purchased years ago for just $0.78 to $3.37 per coin. However, within the first few hours of the transfer, speculation swirled about potential sell-offs and a looming crypto market crash. 

Crypto community members questioned the trader’s intentions, leading to a brief period of Bitcoin price consolidation. While some interpreted the transfer as a calculated effort to take advantage of Bitcoin nearing its all-time high, others viewed it as a potential ploy to sow FUD in the market before pumping their prices for greater returns.

Some also believed that the trader needed to update their cold storage solution, and others went as far as to associate the move with the government. 

Arkham, however, suggests the eight transfers were made as a technical move to transition from a legacy wallet to a more secure and fee-efficient Native SegWit address. The firm claimed there were no signs that the whale intends to sell the assets.

Nevertheless, blockchain research firm 10x Research noted that although there’s no indication that the tokens are being readied for sale, the past few months have shown early holders slowly selling into ETF and corporate treasury demand.

For instance, in February, Bitcoiner PlanB disclosed that he had converted all of his Bitcoin holdings into spot Bitcoin ETFs. He argued that not dealing with keys anymore is much easier, adding, “I guess I am not a maxi anymore.” 

Coinbase’s Conor Grogan suggests wallet compromise

The Bitcoin transfer also drew the attention of major crypto players, some weighing in on the possible cause or just giving their general opinion on the matter.

For starters, Conor Grogan, Coinbase’s head of product, suggested that the $8.6 billion transfer might result from a hack, warning that if confirmed, it could represent the largest theft in crypto history.

He further argued that before the assets were moved, a single BCH test transaction was done, possibly indicating that the actor was testing the private key discreetly, as BCH tends to attract less attention from whale-tracking services.

On the other hand, Binance’s former CEO Changpeng “CZ” Zhao stated that he “got into crypto too late,” citing how 14 years ago most whales bought their BTC for roughly $0.1.

Some analysts hinted that Roger Ver could be the whale responsible for the transfer. They believe he made similar Bitcoin purchases in 2011 and recently bailed out of a Spanish prison on June 5. However, nothing about the whale’s identity has been confirmed.

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