Recent data from on-chain analytics platform CryptoQuant reveals a fascinating phenomenon in the Bitcoin market: long-dormant BTC, untouched in wallets for up to a decade, are suddenly springing into action.
This movement coincides with Bitcoin’s price reclaiming the $70,000 mark, capturing the attention of investors and sparking analysis from on-chain analytics experts.
Awakening of the Sleeping Giants
CryptoQuant’s data highlights a notable trend: on June 2, approximately 2,800 BTC that had remained dormant for two to three years were transferred. The next day, an even larger movement saw 4,500 BTC, untouched for four to five years, being transferred.
The activity continued with BTC that had remained stagnant for over a decade—specifically 210 BTC—changing hands. This phenomenon, termed “old coins moving” by CryptoQuant author Maartunn, suggests an “allocation” phase where long-term holders begin releasing their coins back into circulation.
According to Maartunn, the movement of old coins indicates a potential shift from holding to “distribution,” a characteristic often observed in mature bull markets. This resurgence of old BTC is significant, aligning with historical price peaks, including Bitcoin’s previous rally to a new peak in March.
A Signal of Bullish Trends Emerging
The movement of these long-dormant coins goes beyond mere statistics; it mirrors a broader sentiment among Bitcoin holders.
As noted by another CryptoQuant contributor, Onchained, during bullish market phases, it’s typical for long-term holders to sell portions of their holdings as prices increase. This trend is currently observable as Bitcoin persists in testing significant resistance levels.
Furthermore, Onchained also revealed that despite recent market fluctuations, the ongoing increase in Bitcoin held in unspent transaction outputs (UTXOs) for over three years indicates a strong bullish sentiment among seasoned investors.
The analyst highlighted:
“The cohorts holding Bitcoin for 1 year or more and 2 years or more have halted selling, moving from a distribution phase to a holding phase. This shift reflects renewed confidence in Bitcoin’s future price potential, with these groups opting to retain their holdings rather than sell them at current prices.”
Adding complexity to Bitcoin’s market dynamics is the recent decline in miner reserves, which have reached a 14-year low reminiscent of Bitcoin’s early days when Satoshi Nakamoto was actively involved. This reduction in miner holdings could signify a tightening of Bitcoin supply, potentially hastening a supply crunch.