In July, numerous dormant bitcoin wallets, established in 2017, showed substantial activity. This trend continues into August, with 467.63 BTC spent so far, amounting to approximately $28.2 million.

Millions on the Move: What’s Behind the Reawakening of 2017 Bitcoin Wallets?

Last month, sleeping bitcoin wallets from 2017 moved about 1,636.94 BTC through 23 distinct transactions. So far this August, seven such wallets have emerged from their long inactivity. On Aug. 2, two bitcoin wallets (1, 2), initially created on May 1 and 2, 2017, transferred a total of 400 BTC. The first wallet, identified by btcparser.com, moved 200 BTC, confirmed in block 855,037. Shortly after, the second wallet mirrored this transaction, sending another 200 BTC at block height 855,038.

The consolidation of two transfers for 200 BTC each was moved into a P2WPKH wallet that now holds 499 BTC.

Both derivative wallets used the legacy Pay-to-Public-Key-Hash (P2PKH) format and transferred the 400 BTC to a native segwit or Pay-to-Witness-Public-Key-Hash (P2WPKH) address, where the funds remain to this day. Additionally, the wallet holds another 99 BTC from other transactions. On the same day, a wallet created on April 18, 2017, moved 18.49 BTC for the first time since its inception.

On Aug. 3, at block height 855,251, a wallet created on May 31, 2017, transferred 14.94 BTC. The next day, three more wallets from 2017 executed transactions, sending 11.66 BTC, 11.10 BTC, and 11.44 BTC. All three addresses were created on June 26, 2017, and the funds were moved from P2PKH wallets to newer P2WPKH wallets. The initial two 200 BTC transactions were from the same entity, and it is highly probable that the three transfers on Aug. 3 were also conducted by the same entity.

The reawakening of long-dormant bitcoin wallets, coupled with substantial transfers amid significant market events, highlights a possible shift in the motivations of early holders. Whether driven by market opportunities or external pressures, these movements suggest a strategic repositioning within the BTC space. Oftentimes, longstanding holders are either transferring their bitcoin to new wallets for security or selling the funds to new owners.