Bullish or Bearish? The market's reaction to early miners is unpredictable.

The actions of early Bitcoin miners have been the focus of attention for market investors and industry insiders. This month, early Bitcoin miners have been active, first transferring 50 long-dormant bitcoins, and then using digital signatures to prove ownership of 7,250 bitcoins. However, the market's response to these two events has been perplexing.

Early Miner Activity Surges

According to reports on May 21st, an address holding 50 bitcoins since 2009 initiated two transactions, sending 40 bitcoins to address A and the remaining 9.99968592 bitcoins to address B. Data analyst Antoine Le Calvez from research firm Coin Metrics pointed out that this marks the first time since August 2017 that bitcoins mined in 2009 have been moved.

The cryptocurrency community has been speculating on this transaction, suggesting it may be from the wallet address of Bitcoin's creator, Satoshi Nakamoto.Despite the relatively small scale of 50 bitcoins involved, market prices plunged amidst panic.

Following the news of the bitcoin transfer, the price of bitcoin plummeted from $9,768 to $9,100 within 30 minutes. Despite indications that these bitcoins are unlikely to belong to Satoshi Nakamoto, the market continued to decline.

On the other hand, this week saw another early bitcoin miner use private keys to digitally sign messages for 145 corresponding addresses, exposing Craig Wright's falsehoods. Wright previously submitted documents to the court containing 16,000 addresses to prove ownership of 1.1 million bitcoins, with the 145 addresses owned by this miner also included. Therefore,the early miner used the cryptographic principle of "asymmetric encryption" to prove that out of the 16,000 addresses, 145 belong to him, possibly holding at least 7,250 bitcoins ($64.7 million).

However, the sudden appearance of this early miner did not have any impact on the market.

Unpredictable Market Response

Interestingly, the transfer of bitcoins from an early address holding 50 bitcoins led to a market price drop; however, another early miner holding 7,250 bitcoins (acquired since 2009) came forward to prove ownership without any market reaction. Addressing this situation, Su Zhu, CEO of Three Arrows Capital, expressed his views on Twitter:

"This is actually a positive development, indicating that this miner has consistently believed in the development direction of Bitcoin's protocol for over a decade, and they may even regularly use fiat currency to increase their holdings each month."

https://twitter.com/zhusu/status/1265209899899707393

The early miner holding 7,250 bitcoins has not moved or liquidated these assets since 2009, which is almost impossible for the average person unless they have unwavering faith. Such a strong Hodl belief should indeed instill a certain level of confidence in the market. However, some believe this is negative news because these bitcoins, which have not moved for years, could be considered "lost" and removed from circulation, but the miner's appearance suggests they could sell these bitcoins at any time.

Both arguments have their merits. Do you think this is positive or negative? Feel free to discuss with us in the Facebook comment section.