Key Points
- Thousands of dormant Bitcoins are being moved as the cryptocurrency’s price challenges $70,000.
- Data shows a surge in activity of decade-old Bitcoins since the end of February.
Bitcoin’s Dormant Coins on the Move
The latest data indicates a significant movement of Bitcoins that have been dormant in wallets for up to a decade. This comes as the price of Bitcoin (BTC) is nearing the $70,000 mark.
Old Coins Returning to Circulation
The on-chain volume of Bitcoin has been a source of interest this month. This is due to the return of “older” coins to circulation, amounting to thousands. On June 2 alone, 2,800 BTC moved on-chain for the first time in two to three years.
Even larger was the number of coins that had been stationary for four to five years, which was at 4,500 BTC. On June 3, 210 BTC moved, which had previously been in its wallet for a decade or more.
The movement of decade-old coins on-chain happens fairly regularly. However, the latest stage of the Bitcoin bull market has seen an increase in frequency. Data shows this “oldest” cohort of BTC becoming more active beginning at the end of February, leading up to Bitcoin’s all-time high of $73,800.
Long-Term Holders Remaining Inactive
Long-term holders (LTHs) of Bitcoin, who hold a given amount of BTC without selling it for 155 days or more, continue to resist the temptation to divest themselves of coins. Last week, it was noted that “newer” LTHs, owning coins dormant for one to two years, have indeed cooled distribution behavior.
As Bitcoin’s price recovers from the recent correction to $56,000, a shift in holder behavior is observed. The 1-year+ and 2-year+ cohorts have stopped selling, transitioning from a distribution phase to a holding phase. This change suggests a renewed confidence in Bitcoin’s future price potential, as these cohorts choose to retain their holdings rather than liquidate them at current prices.
Various on-chain indicators point to “strong underlying bullish sentiment.” This is in line with subsequent findings from popular trader Alan Tardigrade this weekend.
