2,000 Bitcoin on the move: Rare Casascius coins awaken after 13 years
Analysis
Price Impact
MedThe activation of 2,000 bitcoin from extremely long-dormant casascius coins, representing over $179 million, introduces a significant amount of supply back into active circulation. while not confirmed to be sold, the sheer volume and immense profit potential (millions of percent) create a scenario for potential profit-taking, which could exert selling pressure.
Trustworthiness
HighThe report is based on verifiable on-chain data regarding the activation of specific, long-dormant casascius coins, a well-known type of physical bitcoin collectible. cointelegraph is a reputable crypto news source.
Price Direction
BearishWhile the article notes that redemption 'doesn't necessarily mean' immediate selling, the awakening of such a large, old stash often leads to speculation and concern about profit-taking by a whale. given the astronomical returns for these coins, the likelihood of some selling or hedging behavior is elevated, which typically creates a bearish sentiment in the short term.
Time Effect
ShortThe immediate market reaction to news of significant whale movements, especially from long-dormant wallets, tends to be short-term, as traders react to the potential for increased selling pressure. any actual selling or strategic movements would typically manifest within days or weeks.
Original Article:
Article Content:
Felix Ng 1 minute ago 2,000 Bitcoin on the move: Rare Casascius coins awaken after 13 years The physical Bitcoin collectibles were minted when Bitcoin was trading for just $3.88 and $11.69 each, marking a massive potential return. Listen 0:00 News COINTELEGRAPH IN YOUR SOCIAL FEED Two long-dormant Casascius coins — each backed by 1,000 Bitcoin — have just been activated as of Friday, unlocking more than $179 million stashed away for more than 13 years. Onchain data indicates that one of the Casascius coins was minted in October 2012, when Bitcoin was trading for $11.69. The other was minted earlier in December 2011, when Bitcoin was valued at only $3.88, giving that Casascius coin a theoretical return of about 2.3 million percent, not including the cost of minting. A little history behind Casascius coins Casacius coins are physical metal coins or bars created by Utah-based entrepreneur Mike Caldwell, which were minted between 2011 and 2013. Caldwell would take Bitcoin and mint it into physical coins, and they are considered one of the most sought-after physical collectibles related to Bitcoin. Source: Sani Each Casacius coin contains an embedded piece of paper with a digital Bitcoin value and is covered in a tamper-resistant hologram. The coins and bars ranged from 1, 5, 10, 25, 100, 500 and 1,000 BTC denominations. However, Caldwell suspended his business after receiving a letter from FinCEN, over concerns that he may have been operating a money transmitter business without a license. How do Casacius coins work Only 16 of the 1,000 BTC bars and 6 of the 1,000 BTC coins were ever made, according to some records . The first person to redeem the private key by lifting the holographic sticker will receive the full value of the coin; after this, the coin will no longer have any Bitcoin value . Related: Bitcoin OG’s selling to ‘weak’ hands will deepen selloffs: Peter Schiff However, redeeming a Casascius coin for its equivalent in Bitcoin doesn’t necessarily mean that a bunch of Bitcoin is about to flood the market. In July, a 100 Bitcoin Casascius coin owner, “John Galt,” who had moved his stash from a physical coin to a hardware wallet, told Cointelegraph that he did so because his funds would be more easily accessible . He had no immediate plans to cash out. “Having 100 BTC is life-changing for anyone. But the thing is, I’ve had it for so long that this was more about staying safe than suddenly getting rich,” he said. Magazine: 13 Christmas gifts that Bitcoin and crypto degens will love # Bitcoin # Physical Bitcoin # Whale Add reaction