The price of Bitcoin crashed under $9,500 on Wednesday afternoon over speculations that its anonymous inventor Satoshi Nakamoto or his close associates may have moved some of the coins. Bitcoin was marching higher in the past four days. However, it collapsed almost 4% within hours on Wednesday after rumoured reports that a previously inactive address had transferred 40-50 Bitcoin (more than $300,000) of the cryptocurrency, similar to a transaction that was mined in the earliest days of the existence of Bitcoin. The drop was most noticeable on Luxembourg-based exchange Bitstamp, where the price for 1 Bitcoin lost 7% in one hour. Reportedly, other peer coins, such as Bitcoin Cash and Litecoin, also sold off.
After monitoring the shift in the cryptocurrency, a Twitter account alerted that an address that had been inactive for 11 years has moved 40-50 BTC to various different wallets. Furthermore, the owner of the address was unknown. Evidently, the unprecedented shift in Bitcoin price resulted in an influx of supply hitting the digital currency market. With this development, the term “Satoshi” was also widely searched by users and miners on the social media platform Twitter making it go viral on Wednesday afternoon.
Reports suggest that the bulk of bitcoins that were transferred on Wednesday was mined in February 2009. At that period, the reward per block was 50 BTC. Notably, almost 11 years ago, pseudonymous creator Satoshi Nakamoto developed or mined the original batch of bitcoins – now popularly known as the genesis block. During that time, the network was quite narrow, with Nakamoto being one of the few active miners in the small community of digital currency. The cryptocurrency whale tracking Twitter bot further reported that the large transfer was initially made in one transaction, but the coins were sent split up into two addresses.
However, there’s still no proof that the coins belong to the anonymous creator of the largest digital token. Bitcoin came into existence in 2008 with the publication of a research paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System,” authored by pen name Satoshi Nakamoto.