Bitcoin Awakens: Long-Dormant Coins Stir as Price Nears Record Highs
Bitcoin is experiencing a surge in activity from wallets that have been inactive for years, a trend coinciding with the cryptocurrency’s price approaching its all-time high of $70,000.
On-chain analytics platform CryptoQuant reveals a surge in movement of “older” Bitcoins, with thousands of coins leaving dormant wallets on a daily basis. This renewed activity on the blockchain is a significant development in the crypto market.
CryptoQuant’s data dives into the age of these “spent outputs,” highlighting a significant increase in movement. On June 2nd alone, roughly 2,800 Bitcoins that had been dormant for 2-3 years shifted on the blockchain for the first time in that period. The numbers are even higher for coins inactive for 4-5 years, with a staggering 4,500 BTC changing hands.
Perhaps most surprising, June 3rd saw the movement of 210 Bitcoins that had been untouched in their wallet for a decade or longer. CryptoQuant analyst J.A. Maartunn noted this trend on their X platform, with the commentary simply stating, “Old coins moving, after old coins moving, after old coins moving.”
Long-Term Holders Remain Steadfast
This movement of “ancient” Bitcoins, while uncommon, isn’t entirely unprecedented. However, the current bull market in Bitcoin appears to be accelerating this trend.
Data from CryptoQuant highlights a rise in activity for this “oldest” group of Bitcoins starting in late February, coinciding with the lead-up to Bitcoin’s current all-time high of $73,800.
As previously reported by Cointelegraph, Bitcoin’s long-term holders (LTHs) – those who haven’t sold their coins for at least 155 days – are generally resisting the urge to cash out. These LTHs represent a crucial pillar of the Bitcoin market.
While “older” LTHs remain unfazed, CryptoQuant data suggests a change in behavior among “newer” LTHs, those holding coins dormant for 1-2 years. This group has shown a decrease in selling activity.
“As Bitcoin recovers from its recent dip to $56,000, we observe a shift in holder behavior,” CryptoQuant contributor Onchained wrote in a recent market update. “The 1-year+ and 2-year+ cohorts have stopped selling, transitioning from a distribution phase to a holding phase.”
Onchained interprets this shift as a sign of renewed confidence in Bitcoin’s future potential. These LTHs are choosing to hold onto their coins rather than selling them at current prices. An accompanying chart within the report visually depicts the varying levels of inactivity among different LTH groups.
Onchained further suggests that multiple on-chain indicators point towards a strong underlying bullish sentiment in the market. This aligns with recent findings from popular crypto trader Alan Tardigrade.
