Key Points
- The fifth-largest Bitcoin (BTC) holding address moved over $6 billion worth of BTC to new addresses.
- The massive BTC transfer coincides with increased institutional interest and anticipation of the Bitcoin halving event.
The Bitcoin address known as “37X”, which holds the fifth-largest quantity of Bitcoin (BTC), has transferred nearly its entire balance of 94,500 BTC, valued at $6.05 billion, to three new addresses. This is the first major movement from the address since 2019.
Movement of BTC
Arkham Intelligence reported on March 25 that the transfer left only 1.4 BTC in the original address. The majority of the BTC, totaling $5.03 billion, was sent to the address bc1q8yj, with the addresses bc1q6m5 and bc1q592 receiving $561.46M and $488.40M in BTC respectively.
This significant transfer happened during a time of increased institutional interest in Bitcoin. This interest is primarily driven by the upcoming Bitcoin halving event, which will reduce block issuance rewards in half. Despite Bitcoin reaching an all-time high price before the halving, the co-founder of D8X decentralized exchange stated that the reduction in supply issuance is still not fully priced in.
Bitcoin Reclaims $70,000 Mark
The massive BTC transfer occurred just two days before Bitcoin reclaimed the $70,000 psychological price level on March 25. This was the first time in 10 days that Bitcoin had reached this price. Additionally, BTC supply on Coinbase hit a nine-year low of 344,856 BTC on March 18, indicating that investors have resumed accumulating BTC off exchanges.
The current Bitcoin rally is primarily driven by the anticipation of the halving and increased institutional inflows from ten Bitcoin exchange-traded funds (ETFs) in the United States. The involvement of traditional financial institutions in launching BTC products is legitimizing cryptocurrency as an alternative asset class, reducing the ‘career risk’ for investors who were previously hesitant to enter the crypto market.
Bitcoin ETFs have reached a combined total of $58.3 billion in on-chain holdings, which represents 4.17% of the current BTC supply. This further highlights the growing interest and investment in the cryptocurrency.
