Bitcoin ‘Zombies’ Awaken: Dormant Coins Move For First Time In Years, What’s Going On?
June 04 2024 - 8:00PM
NEWSBTC
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 Bitcoin’s 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. Related Reading: Bitcoin Gets Massive $500,000 Price Tag
From Billionaire, Here’s Why 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
didn’t stop there; even BTC that had not moved for over a
decade—210 BTC, to be precise—changed 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 BTC’s 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 Bitcoin’s future price
potential, as these cohorts choose to retain 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,
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,
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