Bitcoin has been dormant for 5 years or more and will rise in a new ‘circulation’.
Bitcoin has been on the move in wallets for decades, according to recent data.
According to the chain analysis platform CryptoQuant, thousands of coins are “reviving” every day Bitcoin (BTC) price action tests $70,000.
“Old” BTC units move on chain
Bitcoin has been a source of intrigue on the chain this month as “old” coins return to circulation – by the thousands.
CryptoQuant's used yield age bands metric moved 2,800 BTC on-chain for the first time in between two and three years on June 2 alone.
The number of coins that stood for four or five years was more than 4,500 BTC. June 3 also saw the movement of 210 BTC, which had previously been in the wallet for a decade or more.
“Old coins move, after old coins move, after old coins move,” wrote CryptoQuant analyst JA Martin in part of an opinion piece on X.
“In other words, distribution.”
Decades of on-chain coin flips happen fairly regularly, but the last phase of the Bitcoin bull market has increased in frequency.
CryptoQuant data shows that this “old” group of BTC will become more active at the end of February – which remains at Bitcoin's all-time high of $73,800.
Bitcoin long-term owners in a state of “inactivity”.
As Cointelegraph reports, Bitcoin's long-term holders (LTHs) — entities that have held a certain amount of BTC without selling it for 155 days or more — continue to widely resist the temptation to issue their own coins.
Related: Bitcoin hash ribbs lights first buy signal starting at $25K BTC price.
As CryptoQuant noted last week, “new” LTHs — owning coins that last one to two years — have actually slowed circulation behavior.
“We notice a change in owner behavior as it recovers from the recent correction to $56,000. The 1-year+ and 2-year+ cohorts have stopped selling, moving from the distribution phase to the retention phase,” writes OnChained, a co-contributor to Quicktake Market Update.
“This change reflects renewed confidence in Bitcoin's future price potential, as these syndicates prefer to hold onto their holdings rather than buy at current prices.”
The corresponding chart is from several LTH. Inactivity levels were compared between cohorts.
Onchain added that various on-chain indicators point to “strong bullish sentiment” echoing the findings of prominent trader Alan Tardigrade this weekend.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
