Some of the stolen BTC during the $72 million hack of crypto exchange Bitfinex in 2016 has been just moved.
Whale Alert that tracks large movements of top cryptocurrencies reported that 28.3 BTC worth more than $255k has been moved to an unknown wallet.
⚠ 28.39124 #BTC (255,863 USD) of stolen funds transferred from Bitfinex Hack 2016 to unknown wallet
— Whale Alert (@whale_alert) May 21, 2020
Four years back, Bitfinex lost 120,000 BTC worth $72 million, when the price of bitcoin was about $600. Today, with each BTC at $9,160, this stash is now worth more than $1 billion.
This isn’t the first time that these hackers are moving their funds. Back in June, last year about 185 BTC were transferred to unknown addresses, at that time BTC price was up over 60% YTD at around $10,000. Then in August, 30 BTC were also moved.
Now, just as happens with large transfers, the crypto community fears the worst.
One twitter user said, “If btc does not crash to sub 4k in 1 month, I’ll delete my twitter.”
Large amounts of Bitcoin on the move surely affects the price as happened on May 10. The BTC price fell about 16% that day after a large deposit took place on Gemini; but that deposit was “abnormally” large at 2,500 BTC unlike just over 28 BTC.
Such kind of big deposits result in heightened activity on the exchange where they were made but also triggers market sell on other exchanges as well. This causes a significant increase in trade volume across all exchanges, resulting in a drop in Bitcoin’s price.
However, at times, relatively small and few orders can also have a significant impact on liquidity across many major exchanges.
Just this week, there was speculation led sell-off that resulted in a brief decline of about 7% in BTC price.
It was after Whale Alert reported that 50 Bitcoin had been moved from a wallet dormant since February 2009. Whale Alert suggested it might have been bitcoin’s pseudo-anonymous creator Satoshi Nakamoto who moved the coins, triggering the panic among the market, but as we reported it was very unlikely.