Bitcoin traders have reacted with confusion and concern. | Source: CCN
Share
Key Takeaways
One of Bitcoin’s earliest and largest holders has reportedly sold $1.24 billion in BTC.
Santiment data shows wallets holding 10–10,000 BTC now control a nine-month low 68.04%.
Bitcoin’s decline below $65,000 and continued distribution by whales have deepened concerns.
A dramatic claim ricocheted across crypto X this week.
One of Bitcoin’s oldest whales — a miner dating back to 2009 — had sold its entire $1.24 billion BTC stack as the price slipped below $65,000.
The narrative was irresistible. An original “Satoshi-era” holder cashing out near a 50% drawdown from Bitcoin’s all-time high.
A veteran exiting after surviving every market cycle.
For some, it was proof that smart money was fleeing. For others, it was a warning of deeper pain ahead.
But after reviewing the on-chain data and the viral post that fueled the panic, CCN found the claim to be misleading — and the evidence used to support it manipulated.
Try Our Recommended Crypto Exchanges
Sponsored
Disclosure
We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
How the $1.24 Billion Bitcoin Whale Story Took Off
The rumor began circulating after social media posts claimed that an early Bitcoin miner had transferred and sold approximately $1.24 billion worth of BTC.
Jacob King, a crypto commentator known for his skepticism of Bitcoin on X, wrote:
“One of the oldest recorded Bitcoin whales just sold his entire $1.24 billion BTC stack.
One of the oldest recorded Bitcoin whales just sold his entire $1.24 billion BTC stack.
He’s held through every market cycle since Bitcoin was created in 2009.
“He’s held through every market cycle since Bitcoin was created in 2009. Now he’s cashing out. Ask yourself why.”
The post was accompanied by what appeared to be data from Arkham Intelligence showing repeated transfers of 40.646 BTC per hour to Coinbase — framed as systematic “dumping.”
The implication was clear: a long-dormant 2009 whale was unloading billions in a coordinated exit.
The posts quickly gained traction, feeding into broader fears as Bitcoin hovered below $65,000.
The Edited Arkham Screenshot
The central piece of “evidence” was a screenshot allegedly pulled from Arkham Intelligence.
The image appeared to show a wallet labeled “Satoshi Whale (1KFYo)” sending repeated batches of 40.646 BTC to Coinbase in rapid succession.
However, after reverse engineering the claim and reviewing the original Arkham data, we found that the screenshot had been edited in a way that misrepresented the wallet’s identity and transaction context.
The wallet in question was not a dormant 2009 miner suddenly cashing out.
Original post claiming Satoshi-era wallet was dumping Bitcoin. Source: X.
Specifically, the address behavior was consistent with a Coinbase hot wallet — an operational wallet used by the exchange to process user deposits, withdrawals, and internal liquidity management.
Hot wallets frequently move BTC in structured amounts for operational purposes.
Transfers in fixed increments do not inherently signal liquidation by a single long-term holder.
In other words, what was presented as a historic whale dumping billions was, in reality, routine exchange activity.
Coinbase original wallet. Source: Arkham Intelligence.
Where the $1.24 Billion Figure Came From
Further confusion appears to have stemmed from aggregated data being conflated with a single wallet’s behavior.
Some posts referenced Glassnode data showing elevated short-term holder losses on Feb. 6 — figures that, when viewed in isolation, could total into the billions.
But those metrics represent network-wide realized losses across multiple wallets, not a single entity selling $1.24 billion in BTC.
By combining aggregate market data with a selectively edited wallet screenshot, the narrative of a legendary 2009 whale exit was constructed — and amplified.
Why the Claim Spread So Quickly
The timing made the story especially combustible.
Bitcoin’s drop below $65,000 has already weighed on sentiment, with the asset sitting roughly 50% below its October peak of $126,000.
At the same time, data from Santiment shows that wallets holding between 10 and 10,000 BTC now control 68.04% of total supply — a nine-month low.
The firm reported a net reduction of 81,068 BTC among these wallets over eight days.
🧐 What's been behind the Bitcoin crash that has seen prices fall to as low as $60,001 for the first time since October, 2024?
🐳 Whale and shark wallets holding 10-10K Bitcoin now hold a 9-month low 68.04% of the entire $BTC supply. This includes a dump of -81,068 BTC in just… pic.twitter.com/Yyd20dy3nS
At the same time, smaller “shrimp” wallets holding less than 0.01 Bitcoin had increased their share of supply to a 20-month high of 0.249%.
“This combination of key stakeholders selling and retail buying is what historically creates bear cycles,” the firm said.
It added that “until there is a sign of clear capitulation from the crowd, smart money will continue to gladly sell off their bags and not have any urgency to buy back in.”
Against that backdrop, the idea of a Satoshi-era whale exiting felt plausible — even if it wasn’t accurate.
Bearish Bitcoin Narratives Growing
While Bitcoin’s price is still significantly positive in the long term, its recent pullbacks and Bitcoin whale drop have fueled bearish narratives among traders.
Kelly told CNBC she believed Bitcoin’s value was “zero,” arguing that its scarcity narrative was undermined by the unlimited supply of alternative cryptocurrencies.
Her argument is one that has been growing among Bitcoin skeptics, with Google Trends showing that searches for “Bitcoin going to zero” have surged to their highest level since November 2022.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
