On-chain moves don’t tell the full story: Why OG Bitcoin whales may not be cashing out
On-chain data showing large movements from OG Bitcoin whales may not indicate selling, as these moves could be address upgrades or custody rotations.Summary
Despite narratives suggesting that early Bitcoin supporters ("OG whales") are selling off their holdings, contributing to recent price declines, on-chain analyst Willy Woo advises caution, stating that on-chain moves do not reveal the full story. Recent analysis highlighted significant movements of over 1 million BTC from addresses untouched for years, leading some commentators to conclude that OG whales are dumping. However, Woo points out that these movements are often misinterpreted. Key reasons for these transfers, which are not liquidations for cash, include upgrading legacy addresses to Taproot for quantum security, rotating coins into institutional custody for better security, or moving assets into equity wrappers for leveraging without triggering a sale. While heavy OG activity is confirmed by various data sources, minimal Bitcoin ETF outflows suggest that the market is absorbing these movements, indicating that not all ancient coin movement equates to cashing out.
(Source：CryptoSlate)