Bitcoin ‘Zombies’ Awaken: Dormant Coins Move For First Time In Years, What’s Going On?

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.

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.

Bitcoin Spent Output Age Bands Over Three Years and above:

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.

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.

Bitcoin (BTC) price chart on TradingView

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, Chart from TradingView

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

Latest posts

post-thumbnail
Bitcoin Rich List: Who’s Stacking, Who’s Slacking?
The post Bitcoin Rich List: Who’s Stacking, Who’s Slacking? appeared first on Coinpedia Fintech ...
READ MORE
post-thumbnail
XRP Price Prediction for 2040: Will It Be Enough to Quit Your 9-to-5?
The post XRP Price Prediction for 2040: Will It Be Enough to Quit Your 9-to-5? appeared first on Coi...
READ MORE
default post thumbnail
Analyst Explains Reason Behind Tron Price Sluggishness — Are TRX Bears Now In Control?
The Tron price has continued on its recovery path since reaching a bottom in mid-March, steadily cli...
READ MORE
default post thumbnail
Bitcoin Still Bullish, But $200,000 Off The Table And $137,000 In Sight
Bitcoin’s price action has drawn a sharp dividing line between long-term bullish expectations and ...
READ MORE
default post thumbnail
$202 Million In Long Liquidations Rock Bitcoin Market — What’s Next For BTC Price?
Over the weekend, Bitcoin’s price extended its disappointing performance, falling to around $103,0...
READ MORE
default post thumbnail
Solana Reclaims Key Support After Sweeping Lows – Early Signs Of Reversal?
Solana (SOL) has remained under the radar in recent weeks, with market attention primarily centered ...
READ MORE
Read more posts