Bitcoin Zombies Awaken: Dormant Coins Move For First Time In Years, Whats Going On?
According to recent data from on-chain analytics platform CryptoQuant, in recent weeks, the Bitcoin market has witnessed a fascinating phenomenon: long-dormant BTC, untouched in wallets for up to a decade, are suddenly springing into action.
This movement coincides with Bitcoins price once again reclaiming the $70,000 mark, a dynamic that has not only captured the attention of investors but also sparked analysis from on-chain analytics experts.
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Revival Of The Sleeping Giants
The data revealed by CryptoQuant illuminates a surprising trend: on June 2 alone, roughly 2,800 BTC that had been idle for two to three years were transferred. The following day, a movement of 4,500 BTC, dormant for four to five years, outstripped this.
The activity didnt stop there; even BTC that had not moved for over a decade210 BTC, to be precisechanged hands. This phenomenon, referred to as old coins moving by a CryptoQuant author, Maartunn, suggests an allocation phase, where long-term holders begin to release their coins back into circulation.
Particularly, according to Maartunn, old coins moving indicates a potential shift from holding to distribution, a sign often seen in mature bull markets. This resurgence of old BTC is notable, as it aligns with historical price peaks, including BTCs previous rally to a new peak in March.
And another 2,123 $BTC with the same age.
Old coins moving, after old coins moving, after old coins moving.
In other words, distribution. https://t.co/BBg4e9pNoz https://t.co/zXtjrZ78Y6 pic.twitter.com/bKJgDzAIF0
Maartunn (@JA_Maartun) June 3, 2024
A Signal Of Bullish Trends
The movement of these long-dormant coins is more than a mere statistic; it reflects a broader sentiment among Bitcoin holders.
According to another CryptoQuant contributor, Onchained, during bullish market phases, it is common for long-term holders to offload parts of their holdings as prices rise. This pattern is currently evident as Bitcoin continues to test major resistance levels.
Moreover, Onchained further revealed that despite recent market fluctuations, the consistent increase in Bitcoin held in unspent transaction outputs (UTXOs) for over three years suggests a strong bullish sentiment persists among veteran investors.
The analyst further noted:
The 1-year+ and 2-year+ cohorts have ceased selling, transitioning from a distribution phase to a holding phase. This change indicates a renewed confidence in Bitcoins future price potential, as these cohorts choose to retain their holdings rather than liquidate them at current prices.
Adding to the complexity of Bitcoins market dynamics is the recent decline in miner reserves, hitting a 14-year low, reminiscent of the early days of Bitcoin when Satoshi Nakamoto was still active. This decrease in miner holdings could presage a tightening of Bitcoin supply, potentially accelerating a supply crunch.
Featured image created with DALL-E, Chart from TradingView
Source: NewsBTC.com
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Text source: Crypto Breaking News
