Markets Spooked by Rumored Satoshi Bitcoin Sell Off

KEY TAKEAWAYS

  • On 20 May, 50 BTC was moved from a dormant address dating back to February 2009. It prompted speculation that this was the actions of Satoshi and spooked the crypto markets.
  • The address was once claimed by Craig Wright, but he denied performing the transaction.
  • GBTC, a representative of real money, continues to pile up Bitcoin stock. Its waned interest coincided with Bitcoin‘s price slump.

On May 20, Bitcoin’s price dropped around 5% following the news that 50 Bitcoins had been moved out from a dormant miner address (17XiVVooLcdCUCMf9s4t4jTExacxwFS5uh) dated back to February 10, 2009, just one month after the first Bitcoin transaction between Satoshi Nakamoto and Hal Finney.  

* Coinbase here doesn’t refer to the crypto exchange, but the mining reward.

Source: BTC.com

This prompted speculation that the moves were conducted by Satoshi. Interestingly, it has transpired that the Bitcoins can be found in a document from a legal case involving the controversial self-acclaimed Satoshi Nakamoto, Craig Wright. However, according to Bitcoin billionaire Calvin Ayre, Wright has denied transferring the 50 Bitcoins. This denial has left him in a rather tricky ‘catch 22’ situation.

Wright had previously claimed ownership of 16,000 addresses listed in the document. If he didn’t perform the transaction, then he probably lied to the court.

The court case being referred to is Kleiman vs Wright. The lawsuit was launched in 2018 by the brother of Dave Kleiman, (the former business partner of Wright, who died in 2013), over the ownership of around 1,000,000 Bitcoins. It is claimed by the Kleiman estate that they worked together on the establishment of Bitcoin. There has been speculation for a long time that Satoshi may be Dave Kleiman, which could explain why Craig Wright has the knowledge he does on Bitcoin’s initial idea, and why he owns so many Bitcoins.

 Source: Cointelegraph

According to a crypto intelligence company Chainalysis, some of the funds appear to have made their way to a cryptocurrency mixer. Mixers are designed to combine cryptocurrency from various locations in an effort to obscure trails and make it more difficult to trace the origin of the funds. It appears that 40 BTC went to a legacy address and remains unspent and 10 BTC appears to have gone into a mixer. Chainalysis later added it looks like some of the money ended up at Coinbase.

Glassnode also revealed 0.004 BTC had been moved into Coinbase and 0.003 BTC into Coinpayments.

It seems implausible that it was Satoshi. Could it be Craig Wright or another veteran miner? It may forever remain a mystery. After all, there are still 1.4 million Bitcoins in dormant addresses which have not been moved for over 10 years. Most of them could indeed belong to the real Satoshi.

Source: Bitinfocharts

Meanwhile, GBTC, a representative of real money, continues to buy Bitcoin at historical pace and lock it in the Grayscale vault, Coinbase Custody. It is an important support for Bitcoin price in the short term. Every time GBTC buying interests waned, Bitcoin price lost support and GBTC doesn’t buy during weekends or holidays. The last crash to 8,200 USD happened over the weekend. Yesterday (May 21), GBTC bought 585 Bitcoins, only 25% of recent daily purchase amount of 2,000+ Bitcoin. On May 15, GBTC also bought 500 Bitcoin only, and the price fell from 9,800 USD to 9,100 USD.

Source: Grayscale