A recent surge in moving long-dormant Bitcoin holdings triggered significant price fluctuations. The data shared by CryptoQuant, an analytical firm, reveals that a large sum of long-dormant Bitcoin holdings were moved on-chain during the last week. Because of the move in active Bitcoin ($BTC), the market sees an increased $BTC selling pressure.
Has the selling pressure returned?“When these long-dormant Bitcoins are moved, it often leads to increased selling pressure in the market.” – By @XBTManager Read more https://t.co/oqadACCLnZ pic.twitter.com/CL0ulwTxXz
— CryptoQuant.com (@cryptoquant_com) August 13, 2024
31,600 Long Dormant Bitcoin Mover On-chain Last Week
The crypto market has seen a significant surge in the recent activities of moving inactive Bitcoin back on-chain. As per CryptoQuant, a large sum of long-dormant Bitcoin was moved on-chain during the last couple of days.
On the 11th of August, 18,536 $BTC which had been dormant for approximately 3 years, moved on-chain causing a downward pressure on the price of $BTC. A couple of hours later, another sum of 4,684 inactive $BTC that had been inactive for 3 to 6 months was also moved on-chain.
On the very next day, on the 12th of August 13, 2024, two other movements of 2,588 $BTC and 2,394 $BTC on-chain also sparked market volatility. These Bitcoins remained inactive for 1 and 5 years respectively. Moreover, 2,398 BTC were also moved on-chain yesterday.
How Does Moving Long-Dormant Bitcoin On-Chain Affect the Crypto Market?
Moving these long-dormant holdings on-chain has led to increased selling pressure. This reactivation can have a significant impact on the market value, particularly during periods of low liquidity. As a result, prices may experience overall downward pressure in the market. In a nutshell, the movement of inactive Bitcoin can signal the market sentiment and its effect on the price of Bitcoin.
