On-chain data shows dormant Bitcoin whales are recently becoming active again in a manner reminiscent of the 2021 bull market.
Bitcoin whale, which has been sleeping for 10 years, is waking up
In a new CryptoQuant Quicktake post, analyst Maartunn talked about the formation of a pattern in Bitcoin similar to what occurred during the last bull market of 2021.
The metric of interest here is the amount of Bitcoin moved from a blockchain that has been dormant for at least 10 years before the transaction occurred.
10 years is obviously a very long time, which is why it always sparks discussion in the community whenever wallets holding these old BTC become active again.
In many cases, coins become this old because they were lost at some point. Most of this supply will never be involved in trading again. Because the wallet carrying it was so lost that it could not be rediscovered by any means.
Some of your supplies may not be lost, but simply forgotten, only to be discovered once again. When this happens, the finder (who may or may not be the coin’s original owner) may decide to immediately move on and sell the coin to cash it out, or perhaps decide to hold on for a little longer. Appropriate price timing to offload Bitcoin.
The chart below shows an example of a coin that has been dormant for over 10 years and has seen some movement over the past few years.
Looks like these old coins have moved again recently | Source: CryptoQuant
Looking at the graph, we can see that the Bitcoin bull market in the first half of 2021 saw many instances of dormant BTC stacks breaking their silence in large numbers.
Some of the whales that woke up may have remembered their old BTC wallet after seeing the cryptocurrency in the news, while others may have already rediscovered their old coins some time ago but have been waiting ever since. . This is a profitable sales opportunity.
The 10-year-old coin remained mostly dormant during the latter half of the bull market and the 2022 bear market, with only a few big moves. Two of these in particular were very interesting because they coincided with bottoms in asset prices.
Maartunn highlighted these examples in his chart. According to analysts, these may have been whales that panicked after seeing cryptocurrency prices drop to record lows.
As you can see from the chart, recently dormant whale activity has heated up once again. “There have been at least 13 similar transactions over the past few months. It’s surprising that this is happening during an uptrend, as Bitcoin is rising on news about emerging ETFs,” says Maartunn.
The most recent transaction was just yesterday when a stack of 1,000 BTC, over 10 years old, participated in the move. in post The same analyst at
Cryptocurrency’s recent rally appears to be creating a similar effect to the 2021 bull market, enticing dormant whales to finally move their coins.
BTC price
As of this writing, Bitcoin is trading at around $42,400, up 13% over the past week.
The price of the asset appears to have shot up during the last few days | Source: BTCUSD on TradingView
Featured image by Todd Cravens on Unsplash.com, chart by TradingView.com, CryptoQuant.com
Source: NewsBTC.com