According to recent facts from on-chain analysis platform CryptoQuant, the Bitcoin market has witnessed a fascinating phenomenon in recent weeks: long-dormant BTC, which has been sitting untouched in the wallet for a decade, suddenly springs into action.
This move coincides with Bitcoin’s price once again reaching 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 from CryptoQuant highlights a surprising trend: on June 2 alone, approximately 2,800 BTC, which had been dormant for two to three years, were transferred. The next day, a move of 4,500 BTC, which had been dormant for four to five years, surpassed this.
The activity didn’t stop there; even BTC that hadn’t moved in over a decade – 210 BTC to be precise – changed hands. This phenomenon, dubbed “old coins on the move” by CryptoQuant author Maartunn, suggests an “allocation” phase, in which long-term holders bring their coins back into circulation.
According to Maartunn, the movement of old coins specifically signals a possible shift from holdings to ‘distribution’, a sign often seen in mature bull markets. This revival of old BTC is notable as it aligns with historic price peaks, including BTC’s previous rally to a new peak in March.
And another 2,123 $BTC with the same age.
Old coins in motion, after old coins in motion, after old coins in motion.
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 just a 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 shed portions of their holdings as prices rise. This pattern is currently clearly visible as Bitcoin continues to test major resistance levels.
Furthermore, Onchained further revealed that despite recent market fluctuations, the consistent increase in Bitcoin held in unspent transaction outputs (UTXOs) for over three years indicates that strong bullish sentiment remains among sophisticated investors.
The analyst further noted:
The 1 year+ and 2 year+ cohorts have stopped selling and moved from a distribution phase to a holding phase. This change signals renewed confidence in Bitcoin’s future price potential, as these cohorts choose to hold on to their holdings rather than liquidate them at current prices.
Adding to the complexity of Bitcoin’s market dynamics is the recent decline in miner reserves. reached a 14-year low, reminiscent of the early days of Bitcoin when Satoshi Nakamoto was still active. This decline in miner ownership could foreshadow a tightening supply of Bitcoin, potentially accelerating a supply crisis.
Featured image created with DALL-E, Chart from TradingView
