An investor has permanently destroyed 107 Bitcoin worth approximately $8.3 million after the assets sat dormant for 11 years. Cryptocurrency analysis firm LookOnChain reported that five wallets sent the Bitcoin to a burn address on May 26. Analysts described the move as “Burning such a huge amount of money like this is just unbelievable.” The incident coincides with Bitcoin’s price retreating to around $75,000, a nearly 7% drop over two weeks.
According to cryptocurrency analysis firm LookOnChain, an investor burned 107 Bitcoin after it was dormant for 11 years. The firm stated that on May 26, five wallets sent the Bitcoin, now worth about $8.3 million, to a burn address.
Analysts from the firm remarked, “Burning such a huge amount of money like this is just unbelievable.” One possible explanation is that the transaction was an accidental error made during an address transfer.
The second speculative reason is that the investor wished to reduce Bitcoin’s supply intentionally. The Bitcoin was acquired roughly 11 years ago when its price was between $230 and $245, representing an initial investment of around $26,215.
Reducing Bitcoin’s supply could potentially lead to a price spike if demand is sufficient. Currently, Bitcoin’s price has fallen to the $75,000 level, dipping nearly 7% in the last two weeks according to CoinGecko data.
The price dip is likely due to investors anticipating unchanged interest rates amid higher-than-expected inflation figures. Macroeconomic pressure and geopolitical tensions may keep Bitcoin’s price restrained for the time being.
