Dormant Wallet Awakens: Is Bitcoin at Risk After 14,000 BTC Moves?
Approximately 14,000 bitcoins that had remained dormant for 7 to 10 years were moved on February 10th. Notably, they were not transferred to any exchanges, indicating that an immediate sale is unlikely.
Previous instances of similar activity did not always result in a drop in Bitcoins value, as noted by CryptoQuants analysis. Its also worth noting that the average acquisition cost of these bitcoins is relatively low, which may influence the holders future decisions regarding potential sales, as noted by the on-chain crypto analytic platform.
At the time of writing, Bitcoin is trading at nearly $97,500, reflecting a minor increase over the past day.
Bitcoin Holder Activity
According to Glassnodes recent observation, retail Bitcoin investors holding 1 BTC or less have significantly increased their accumulation rate since mid-December. This cohort of holders has purchased an average of 10,627 BTC per day, which represents a 72% acceleration compared to last years daily average of 6,177 BTC.
On the other hand, large-scale holders, or whales (owning over 1,000 BTC), have been offloading their holdings at a rapid pace since November 24, sending an average of 32,509 BTC per day to exchanges. This is a 9x increase in potential sell-side pressure compared to the yearly average.
Such a shift highlights a divergence in market behavior, as retail investors are accumulating aggressively while whales continue to distribute. Notably, retail investors had previously sold into market strength when Bitcoin surpassed $100,000 in November. The ongoing trends suggest a redistribution of BTC from larger to smaller holders, which could impact the assets trajectory in the coming months.
Strategy Resumes Bitcoin Accumulation
Unlike whales, institutions have continued to amass the worlds largest cryptocurrency. For instance, Strategy, formerly known as MicroStrategy, has restarted its Bitcoin accumulation after a brief pause.
Co-founder Michael Saylor announced the latest purchase of 7,633 BTC for $742.4 million at an average price of $97,255. This brings the companys total holdings to 478,740 BTC, acquired for $31.1 billion. At the current prices, the firm now holds over $46.6 billion in BTC, securing a paper profit of more than $15 billion.
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