17th anniversary tragedy of the Bitcoin White Paper! Satoshi Nakamoto's Wallet evaporates 5 billion dollars in a single day.

The Bitcoin White Paper will celebrate its 17th anniversary tomorrow, while Satoshi Nakamoto's Wallet has suffered a heavy blow. Just in the past day, his total Bitcoin holdings have decreased by over $5 billion. Despite the Federal Reserve lowering interest rates, both retail investors and institutional enterprises have fully withdrawn, indicating a lack of confidence. Experts have harshly criticized that Bitcoin has strayed from Satoshi Nakamoto's original vision, and the increasing control of the U.S. government could lead to its “ultimate destruction.”

Satoshi Nakamoto Wallet evaporates 5 billion USD in 24 hours

(Source: Arkham)

On the 17th anniversary of the release of the Bitcoin White Paper, due to Bitcoin's price falling below $107,000, Satoshi Nakamoto's Wallet lost over $5 billion. Earlier today, Arkham Intelligence reported that Satoshi Nakamoto's personal Bitcoin Wallet lost nearly $5 billion within 24 hours, providing a shocking data point.

Arkham claims a daily loss of less than $5 billion, but this observation regarding Satoshi Nakamoto's Wallet was made while the price of Bitcoin was still around $108,000. In the following hours, the price of Bitcoin further declined, dropping below $107,000. It is currently unclear whether this downward trend will continue, but it seems to be an ominous sign. Tomorrow marks the 17th anniversary of Satoshi Nakamoto's release of the Bitcoin White Paper, and the cryptocurrency community is facing a fragile moment.

The exact holdings of Satoshi Nakamoto's Wallet have been a hot topic in the crypto community. According to various blockchain analyses, Satoshi is estimated to hold around 1.1 million Bitcoins, which are spread across multiple early mining addresses. With Bitcoin falling from $112,000 to $107,000, the paper loss on these holdings indeed reaches about $5.5 billion (1.1 million × $5,000 decline).

Although this number is astonishing, it needs to be clear that this is a paper loss rather than an actual loss. Satoshi Nakamoto's Wallet has not moved any Bitcoin since 2010, and these addresses are considered “dormant addresses.” From the perspective of mining costs being almost zero since 2009, even if Bitcoin drops to $107,000, Satoshi Nakamoto's paper gains would still be astronomical. However, a single day paper loss of $5 billion as a data point does indeed reflect the current market's extreme volatility.

It is still too early to declare a crisis, but the sentiment in the retail sector is moving towards fear. Behind the tense anniversary is the collapse of market confidence and profound doubts about the future direction of Bitcoin.

The Federal Reserve (FED) rate cut fails as retail investors and institutions withdraw simultaneously

However, some existing data points seem to exacerbate this ominous feeling. The Federal Reserve (FED) lowered interest rates yesterday, which usually signals a rise in cryptocurrency asset prices. However, since then, both retail investors and institutional enterprises have fully withdrawn, showing a lack of confidence and triggering a price drop. This phenomenon of “good news being fully priced in” is not uncommon in financial markets, but its occurrence on the eve of the Bitcoin White Paper anniversary adds to the irony.

Interest rate cuts should increase market liquidity, lower capital costs, and drive up risk assets. However, the trend of Bitcoin contradicts this logic. This abnormal performance reveals deep-seated issues in the current market: investors' confidence in Bitcoin is no longer solely dependent on monetary policy, but is influenced by more complex factors.

The signs of retail investors withdrawing are clearly visible in the on-chain data. The net inflow of Bitcoin to exchanges has continued to rise over the past week, indicating that holders are transferring Bitcoin to exchanges in preparation for selling. At the same time, the number of active addresses on the chain has decreased, showing that retail investor participation is shrinking. This trend of retail investor exit is highly similar to the pattern observed at the beginning of the bear market in 2022.

The withdrawal of institutional investors is increasingly concerning. The recent continuous net outflow from the U.S. spot Bitcoin ETF stands in stark contrast to the influx of substantial funds at the beginning of the year. Institutional investors are usually more rational and better informed than retail investors, and their withdrawal often indicates structural issues in the market. When both retail and institutional investors exit simultaneously, the market lacks incremental capital support, and prices naturally come under pressure.

Bitcoin deviates from Satoshi Nakamoto's vision, experts warn of controllable destruction

In addition, experts have harshly criticized Bitcoin for deviating from Satoshi Nakamoto's original vision. Although cryptocurrencies are intended to achieve statelessness and decentralization, they are now more closely tied to governments than ever before. Ray Youssef told BeInCrypto that this could enable the US to carry out “controlled destruction” of the industry’s market value.

Satoshi Nakamoto's vision depicted in the Bitcoin White Paper is: a peer-to-peer electronic cash system that does not rely on any centralized institution, achieving value transfer through cryptography and a decentralized network. However, 17 years later, Bitcoin has drifted further from this vision. The launch of the US spot Bitcoin ETF, while facilitating institutional funds entering the market, has also caused Bitcoin's price to increasingly depend on Wall Street's sentiment and regulatory policies.

What is even more concerning is that the U.S. government's control over Bitcoin is increasing. The Trump administration is pushing to establish a national Bitcoin reserve, which, while seen by some as an acknowledgment of Bitcoin, also means that Bitcoin is becoming a strategic asset for the nation. When an asset that claims to be decentralized is held in large quantities by sovereign nations and included in their strategic reserves, can it still maintain its independence?

Four Major Manifestations of Bitcoin Deviating from Satoshi Nakamoto's Vision

Centralized Custody: A large amount of Bitcoin is concentrated in the hands of ETFs and custodial institutions, contrary to the spirit of self-custody.

Government Intervention: The United States establishes a national reserve, and regulatory agencies deeply participate in market regulation.

Institutional Dominance: Retail investor participation declines, Wall Street institutions become the main price driver.

Speculative nature: The use case as a payment tool is rare, and speculative trading has become the main function.

Ray Youssef's warning about “controlled demolition” is not alarmist. When the U.S. government holds a large amount of Bitcoin and regulatory agencies have market dominance, they indeed have the ability to influence the market through policy adjustments and asset sell-offs. The mere existence of this possibility is contrary to the censorship resistance and decentralization features that Satoshi Nakamoto sought when designing Bitcoin.

Symbolic Crash Before Anniversary

In other words, throughout the history of Bitcoin, Satoshi Nakamoto and his vision have been a common spiritual pillar for various cryptocurrency enthusiasts. If his Wallet experiences a loss of funds at a significant milestone in the community, it may also carry some symbolic meaning. Whether you like it or not, symbols and narratives play an important role in shaping investor sentiment, which is crucial in the token industry.

Tomorrow marks the 17th anniversary of Satoshi Nakamoto's publication of the Bitcoin White Paper, which should be a moment for the crypto community to celebrate. However, the current market atmosphere is extremely heavy. The substantial paper losses in Satoshi's Wallet, coupled with the simultaneous withdrawal of retail investors and institutions, as well as criticisms of Bitcoin straying from its original intent, have all culminated in a sharp irony just before the anniversary.

This symbolic crash could have a profound impact on investor psychology. In the crypto market, narrative and sentiment often outweigh fundamentals. When the creator of Bitcoin (who has never touched these assets) suffers a massive loss in their Wallet on the eve of the anniversary of the White Paper, this negative narrative quickly spreads within the community, exacerbating panic.

Analysts warn that various measures taken by the U.S. government and the weak market sentiment may accelerate the bearish trend. If retail investors lack real confidence, token prices could experience historic crashes in a very short time. Although some analysts hold optimistic hopes, the price of Bitcoin has been declining recently, and the shift in market dominance could further exacerbate these trends.

On October 31, 17 years ago, Satoshi Nakamoto released the Bitcoin White Paper, marking the beginning of a financial revolution. This 9-page document outlined a peer-to-peer electronic cash system that did not require trust in a third party. Today, 17 years later, Bitcoin has grown from a geek experiment to an asset class worth trillions of dollars. However, at this moment that should be celebrated, the market is engulfed in panic, which may be a collective reflection on the current direction of Bitcoin's development.

Has Bitcoin really deviated from Satoshi Nakamoto's vision? There is no standard answer to this question. Supporters argue that the widespread adoption and price increase of Bitcoin prove its success. Critics, on the other hand, believe that when Bitcoin became a speculative tool for Wall Street and a strategic asset for governments, it lost its original revolutionary nature. The enormous loss of Satoshi Nakamoto's wallet on the eve of the White Paper anniversary adds a dramatic footnote to this debate.