Dormant Bitcoin Reactivated Amid Rising Prices, Reveals CryptoQuant Data
Summary:
Bitcoin coins, dormant for up to a decade, are being reactivated, reveals data from on-chain analytic service, CryptoQuant. As BTC prices near $70,000, 'old' Coins are returning to circulation. On June 2, 2,800 BTC moved on-chain after two to three years of dormancy, and 4,500 BTC after four to five years of inactivity. The uptick in reactivation of decade-old coins is noticeably more frequent due to the recent Bitcoin bull market. Notably, long-term holders (LTHs) show a tendency to hold their coins rather than liquidating them at current rates, indicating renewed confidence in Bitcoin's future price potential.
Recently observed data indicates that a substantial amount of Bitcoin (BTC) - dormant for up the last ten years- is now transitioning. As per the on-chain analytic service, CryptoQuant, an array of BTC coins are now being reactivated on a daily basis as BTC price is in a bid to surpass the $70,000 mark. Bitcoin's on-chain volume has sparked curiosity this month with 'old' coins re-entering circulation, reaching into the thousands. Data provided by CryptoQuant's Spent Output Age Bands metric reveals that 2800 BTC, which had been inactive between two to three years, moved on-chain on June 2. Even larger was the movement of Bitcoin that had remained static for four to five years - a whopping 4,500 BTC. Moreover, June 3 marked the movement of 210 BTC that had been in its wallet for over a decade. CryptoQuant's contributing analyst J. A. Maartunn highlighted the recurring movement of 'old' coins, referring to it as 'distribution'. It's not unusual for decade-old Bitcoins to be nudged back into circulation, but the recent spurt of Bitcoin's bull market has resulted in a more frequent trend. This 'oldest' form of BTC has been shifting into a more dynamic stance since late-February, coinciding with Bitcoin hitting the all-time high of $73,800. Bitcoin's long-term holders (LTHs) - those holding a specific volume of BTC without selling it for more than 155 days - generally show a reluctance to have their holds divested of coins. CryptoQuant recently pointed out that newer LTHs (ones holding coins dormant for one-two years) have indeed curbed their dispensing behaviour. As Bitcoin's price rebounds from the recent $56,000 correction, a shift in holder behaviour is observed, and the one-year and two-year cohorts have curtailed selling, thereby entering a holding phase from a distribution one. This suggests renewed confidence in Bitcoin's price trajectory, with these cohorts choosing to remain hold rather than liquidating them at current rates. The distinct bullish sentiment is reinforced through multiple on-chain indicators, accordant with independent findings by noted trader, Alan Tardigrade, over the weekend. Please note, this report does not extend investment advice or recommendations. Investments and trading moves are inherently risky, and readers are encouraged to carry out their own research before making decisions.
Published At
6/4/2024 3:54:56 PM
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