Bitcoin long-term holder “inactivity” is gradually being challenged as previously dormant BTC re-enters circulation, with some coins having been stationary for over a decade.
Bitcoin Moving After Long Periods of Dormancy
Recent data reveals that Bitcoin, which had been inactive in wallets for up to a decade, is now on the move. According to on-chain analytics platform CryptoQuant, thousands of these long-dormant coins are being transacted daily as Bitcoin’s price approaches $70,000.
“Old” Bitcoin Moves On-Chain
This month has seen increased on-chain activity from “older” Bitcoins, which are returning to circulation in significant quantities. On June 2 alone, CryptoQuant’s Spent Output Age Bands metric reported that 2,800 BTC, which had been inactive for two to three years, were moved on-chain. Additionally, 4,500 BTC, stationary for four to five years, were also moved. On June 3, 210 BTC that had been dormant for a decade or more were transacted.
CryptoQuant contributing analyst J. A. Maartunn commented on this trend, noting, “Old coins moving, after old coins moving, after old coins moving.”
While the movement of decade-old coins is not uncommon, the current phase of the Bitcoin bull market has seen an increase in the frequency of these transactions. Data from CryptoQuant shows that this cohort of the oldest BTC began to become more active starting at the end of February, ahead of Bitcoin’s all-time high of $73,800.
Long-Term Holders Show Resilience
Despite the uptick in the movement of older coins, Bitcoin‘s long-term holders (LTHs)—those holding BTC without selling for at least 155 days—continue to largely resist selling owning coins dormant for one to two years, have also reduced their distribution activity.
CryptoQuant noted last week that as Bitcoin’s price recovers from its recent dip to $56,000, there is a noticeable shift in holder behavior. The 1-year+ and 2-year+ cohorts have transitioned from selling to holding. This change suggests a renewed confidence in Bitcoin’s future price potential, as these holders choose to retain their BTC rather than sell at current prices.
An accompanying chart illustrated levels of inactivity among several LTH cohorts. Onchained, a contributor to CryptoQuant, added that various on-chain indicators point to “strong underlying bullish sentiment,” aligning with findings from popular trader Alan Tardigrade this weekend.
Summary Review: The movement of long-dormant Bitcoin signals a significant shift in the market as previously inactive coins re-enter circulation. Meanwhile, the overall behavior of long-term holders suggests a strong belief in Bitcoin’s future value, contributing to a bullish outlook in the crypto market.
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