Whale wakes from slumber as Bitcoin reaches highest value in 2022

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Many factors have contributed to positive market volatility over the past few weeks, and once again it is Bitcoin that suddenly rose from the background and took the limelight.

As analysts and traders alike focused on the moving price of indices and equities due to the supply and demand relating to firms that used to conduct business globally now being curtailed by sanctions and energy providers choosing their markets according to political friendliness which could determine which fiat currency certain commodities are settled with, cryptocurrency has been sitting there quietly in the background waiting.

Bitcoin values had been reasonably steady and quite low for a few weeks, but suddenly they began to rise when the Russian government stated that gas and oil products could potentially be settled in Bitcoin.

Now, Bitcoin stands at $47,500 which is the highest it has been during the course of 2022.

Just as this high has taken place, many investors are taking the view that it could rise further, because being tied to a physical asset such as oil or natural gas as a means of settlement places Bitcoin into the institutional commodities trading arena, which furthers its move into the main ecosystem of global financial services and capital markets.

One example is a whale (entity or person with enough Bitcoin stored in a cold wallet to be able to manipulate market prices) which had suddenly woken up from an 11 year slumber on Sunday.

Whales often begin accumulating more Bitcoin or selling large amounts during times of extreme price movements.

In this case, a wallet address which held $3.65 million worth of Bitcoins that were mined in 2011, was moved for the first time in 11 years.

This sudden reactivation of a cold storage wallet into the live Bitcoin market was spotted by the blockchain parser Btcparser.com. Data shows that the 50 Bitcoins that were sent on Sunday, originated from mined Bitcoin that were issued on January 30, 2011.

Whilst these 50 Bitcoins will have had a value of just a few hundred dollars back in 2011, they were worth $2.22 million at the time of transfer at block height 729,187.

Last year, during the early summer when Elon Musk made his mark as a cryptocurrency influencer and managed to crash the value of 5 popular cryptocurrency denominations by almost $1 trillion as a result of a tweet, many whales began to buy in at the low point. This continued as the price rose once again as the US authorities began issuing papers and holding summits on how to regulate cryptocurrency and subsequently when Elon Musk then issued another tweet saying that the 'environmental issues' he cited which caused the crash had 'now been rectified' and the price went back up again.

At that time, whales which had kept large amounts of Bitcoin in cold storage began to transfer their coins to the live market en masse, and some began to sell off large amounts and cash in on their investments.

The reactivation of the 50 Bitcoins that were inactive for 11 years could be a sign that an exciting market is ahead.

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