January 18, 2026
Finance

Long-Dormant Bitcoin Holder Liquidates Half of Holdings, Realizes 31,250% Gain

An inactive Bitcoin wallet from 2012 activates to offload substantial assets amid market resistance

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Summary

A Bitcoin wallet, inactive since 2012 and originally holding 5,000 BTC, has sold half of its holdings, realizing a profit of 31,250%. The sales have been gradual, with transactions directed mainly to Binance, amounting to roughly $265 million. The remaining 2,500 BTC valued near $237.5 million still present potential market impact given current Bitcoin price resistance.

Key Points

A Bitcoin wallet inactive for over 12 years began selling its holdings in 2024.
Originally holding 5,000 BTC purchased at $332 each in 2012, it has sold 2,500 BTC at an average price above $106,000.
The partial liquidation yielded approximately $265 million in revenue, with additional 500 BTC transferred to Binance valued at nearly $48 million.
Selling activity is methodical, involving multiple transactions over five months, with 2,500 BTC still remaining in the wallet worth about $237.5 million.

After remaining untouched for over a decade, a prominent Bitcoin wallet known within trading circles has reemerged, converting a significant portion of its cryptocurrency assets into cash. This wallet, referred to as "5K BTC OG," first acquired its entire allotment of 5,000 Bitcoins in 2012, at an approximate price of $332 per Bitcoin. Over the past months, it has methodically sold 2,500 of these coins, securing an average exit price around $106,164 per Bitcoin. This strategic selling has generated gross revenue near $265 million.

According to tracking data provided by chain analytics specialists at Lookonchain, an additional 500 Bitcoins were transferred to Binance, one of the world’s leading cryptocurrency exchanges. These 500 Bitcoins translate to a value of roughly $47.77 million at current prices. The movement of these assets marks the latest in a pattern of withdrawals emanating from this veteran holder, who had previously remained dormant for approximately 12 years.

The pattern of sales suggests a calculated approach, with individual transactions typically involving 250 to 500 Bitcoins. These outflows have been distributed across at least 10 separate transactions directed to Binance within the last five months. The gradual dispersal of this volume indicates a controlled exit strategy rather than a sudden liquidation.

Despite these sales, the wallet in question still retains half of its original Bitcoin holdings – 2,500 Bitcoins. At the prevailing market price, these remaining assets are valued at about $237.5 million. This remaining position poses a significant factor for market participants, as a sizeable sale from a well-established early holder could exert downward pressure on Bitcoin’s price, especially in the current environment where the cryptocurrency is confronting resistance just below the $100,000 mark.

Collectively, the profits realized by this wallet, combining both realized and unrealized gains, exceed $500 million. This remarkable figure underscores one of the most lucrative hold-to-exit periods in Bitcoin’s history, spanning more than a decade from acquisition to partial liquidation.

Among market observers, long-term enthusiasts of Bitcoin have lauded the wallet’s historic "diamond hands," symbolizing steadfastness despite volatile price movements over the years. Conversely, traders and market analysts remain attentive and somewhat cautious as assets that have been dormant since Bitcoin's early post-Satoshi period are now becoming active and liquid. The fact that half of these long-held assets have already been sold contributes to ongoing market scrutiny and speculation about future price impacts.

Risks
  • Potential for the remaining 2,500 BTC to be sold could lead to increased market supply and downward price pressure.
  • Bitcoin’s price is currently approaching a resistance zone near $100,000, making further large sales from legacy holders possibly disruptive.
  • Reactivation and liquidation of long-dormant Bitcoin supplies may increase market volatility given their large volume and historical significance.
Disclosure
Education only / not financial advice
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