David Edwards
A dormant Bitcoin whale has re-emerged after 14 years, transferring $9.6 billion in BTC in a move that, combined with new U.S. crypto legislation, is sparking concerns about a potential market correction.
According to Cointelegraph, the whale received the Bitcoin in April and May 2011 when the asset traded below $30. The recent activity follows the U.S. House’s passage of three major crypto bills, including the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, approved Thursday in a 308–122 vote.
Legislative Clarity or Regulatory Risk?
Jacob King, CEO of WhaleWire, suggests the whale may have liquidated in anticipation of regulatory pressures, particularly the GENIUS Act’s audit and compliance requirements on stablecoins. King warned in a Friday X post that the law “will burst the biggest bubble and fraud in financial history: Bitcoin,” claiming it is “propped up by fake money.”
By contrast, Katalin Tischhauser, head of investment research at Sygnum, argues the GENIUS Act could foster greater institutional adoption by providing legal clarity and recognizing stablecoins as valid settlement mechanisms.
Whale Psychology and Market Sentiment
Not all analysts believe regulation is the primary catalyst behind the whale’s move. Nicolai Sondergaard of Nansen stated that long-term Bitcoin holders may be taking profit purely due to substantial unrealized gains, not policy fears. “You still held for several years and have now reached incredible levels of wealth. Eventually, one would wish to enjoy the benefits,” he said.
This particular whale saw returns exceeding 2.4 million percent—amassing billions from a modest investment made during Bitcoin’s infancy. The transfer has triggered market-wide speculation about whether additional high-value holders could follow suit.
Market indicators remain mixed. The Crypto Fear & Greed Index reads 73, reflecting high greed sentiment but suggesting that many investors remain cautiously under-allocated and wary of a near-term pullback.
ETF Inflows Remain Resilient
Despite these concerns, institutional appetite continues to strengthen. U.S.-listed spot Bitcoin ETFs logged their 11th straight day of net inflows on Thursday, attracting over $522 million, according to Farside Investors.
Options data from Nansen indicates that traders are positioning for continued volatility, with “mildly bullish” sentiment paired with hedges to account for potential downside.
