3,200 Bitcoin dormant for 5 years moving as BTC price peaks
The move comes off Bitcoin’s recent rally to a 9-month high of $26,900.
A Bitcoin (BTC) whale just moved up to 3,200 tokens that had been dormant for three to five years. The tokens, currently valued at a whopping $84.9 million, were moved shortly after BTC reclaimed the 9-month high of $26,900 in its latest rally.
Maartun, a prominent analyst and verified CryptoQuant author, drew public attention to the development today, citing data from the CryptoQuant Bitcoin: Spent Output Age Bands chart.
3200 #Bitcoin with an age of 3 years ~ 5 years has moved on the chain 😲 pic.twitter.com/iuNEpIw2Hu
— Maartunn (@JA_Maartun) March 17, 2023
The timing of the recent move has sparked concerns about an incoming selloff, mainly because Bitcoin is in its best position since June 2022. The last time such a large amount of 3- to 5-year-old BTC tokens moved on-chain was January 5, when BTC promised but still traded below $17,000.
Also, it should be mentioned that the BTC tokens which had been dormant for 5 and 7 years have also become gradual move on-chain, with over 4,500 tokens reawakened in the past week. Among these, the largest intraday cluster of transactions involved 3,022 tokens on March 14.
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Market intelligence platform Santiment also revealed that investors have recently been scrambling to take profits from their BTC and ETH investments as profit-taking trades see a massive surge amid the recent rally. Notably, the number of BTC’s profit-taking trades when peaking was last seen in December 2020.
🤑 With #Bitcoin jumps over $27k for the first time since June 12, there are 2.4 times as many profit trades as loss trades on $BTC network since Wednesday. The markets are very polarized with #FOMO and release fear which both happen at the same time. pic.twitter.com/AsZ3485KDR
— Santiment (@santimentfeed) March 17, 2023
Long term holders untouched
Despite these, these movements do not represent the majority of assets held by long-term investors, as Bitcoin Binary Coin Days Destroyed (CDD) metric reveals a low long-term ownership movement in the past week.
Furthermore, blockchain intelligence resource IntoTheBlock revealed today that long-term BTC holders have continued to hold onto their holdings despite the recent price surge. According to IntoTheBlock, the number of BTC addresses holding tokens for at least a year has risen to a new all-time high.
Bitcoin holders continue to hodl. The $BTC owned by addresses that have held for over a year, reaches a new all-time high. With over two-thirds of all circulating supply in the bag, history suggests that this group is unlikely to start selling their holdings until we get close to… pic.twitter.com/LtjgZQpuCV
— IntoTheBlock (@intotheblock) March 17, 2023
Meanwhile, Bitcoin’s quest to establish a comfortable position above $27,000 remains on track as the asset recently staged a comeback against the bears after a drop to $26,200 a few hours ago. BTC is changing hands at $26,546, up 7% in the last 24 hours.
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