According to another Data From on-chain analytics platform CryptoQuant In recent weeks, the Bitcoin market has witnessed a remarkable phenomenon: long-dormant Bitcoin, which had not been touched in wallets for up to a decade, suddenly began to work.
This move coincides with the price of Bitcoin once again reclaiming the $70,000 mark, a dynamic that has not only caught the attention of investors, but also sparked analysis from on-chain analytics experts.
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Reviving sleeping giants
data open From CryptoQuant highlights a surprising trend: On June 2 alone, nearly 2,800 bitcoins that had been dormant for two to three years were transferred. The next day, the movement of 4,500 bitcoins, dormant for four to five years, exceeded this number.
The activity did not stop there; Even a bitcoin that hasn't moved in over a decade — 210 bitcoins to be exact — has been traded. This phenomenon, referred to as “old coin flipping” by CryptoQuant author Maartunn, refers to the “allocation” phase, where long-term holders begin to release their coins back into circulation.
In particular, according to Martone, the move of older coins indicates a potential shift from holding to “distributing,” a sign often seen in mature bull markets. This rally in the old Bitcoin is notable, because it is in line with historical price peaks, including Bitcoin's previous rise to a new peak in March.
And 2123 others $ Bitcoin With the same age.
Old currencies move, after old currencies move, after old currencies move.
In other words, distribution. 😉https://t.co/BBg4e9pNoz https://t.co/zXtjrZ78Y6 pic.twitter.com/bKJgDzAIF0
– Martin (@JA_Maartun) June 3, 2024
Signal of uptrends
The movement of these long-dormant currencies is more than just a statistic; It reflects broader sentiment among bitcoin holders.
According to another CryptoQuant contributor, Onchained, during bull market phases, it is common for long-term holders to unload portions of their holdings as prices rise. This pattern is currently evident as Bitcoin continues to test key resistance levels.
Furthermore, Onchained also revealed that despite recent market volatility, the continued increase in Bitcoin held in Unspent Transaction Outputs (UTXOs) for over three years indicates a continued strong bullish sentiment among seasoned investors.
The analyst further noted:
The 1-year-old and 2-year-old and 2-year-old groups have stopped selling and are moving from the distribution phase to the holding phase. This change signals renewed confidence in Bitcoin's future price potential, as these groups choose to hold onto their holdings rather than liquidate them at current prices.
Further complicating Bitcoin market dynamics is the recent decline in miners' reserves. Recording its lowest level in 14 years, reminiscent of the early days of Bitcoin when Satoshi Nakamoto was still active. This decline in miners' holdings could tighten the supply of Bitcoin, potentially accelerating the supply crunch.
Featured image created with DALL-E, chart from TradingView