Movements in Bitcoin as Long-Dormant Assets Come to Life
According to on-chain data, over the weekend of August 11-12, Bitcoin (BTC) that had been dormant for more than three years started to move. The cryptocurrency market is experiencing fluctuations alongside macroeconomic data from the United States, where the Producer Price Index (PPI) was reported at 2.2%, falling short of expectations and invigorating the crypto market.
Significant Activity in the Crypto Market
The week has been marked by notable on-chain data. XBTManager, an analyst from CryptoQuant, announced that a total of 29,206 BTC were transacted between August 11 and 12. The fact that these Bitcoins have been moved after three years of inactivity has drawn significant attention.
Potential Selling Pressure on Bitcoin
XBTManager indicated that the movement of over $1.7 billion worth of Bitcoin within just two days could create selling pressure in the cryptocurrency market. While BTC has managed to hold above the $60,000 mark, it may struggle to maintain that level for an extended period.
The analyst reported that on August 11, 18,536 BTC, which had been inactive for two to three years, were moved. This activity could potentially create noticeable selling pressure. Shortly after, XBTManager noted that 5,684 BTC, which had not been active for three to six months, were also transacted.
On August 12, an additional 4,986 BTC that had been inactive for three to twelve months were transferred to other wallets. On the same day, 2,394 BTC that had been dormant for three to five years were observed moving on-chain.
Market Implications of Inactive Bitcoin Movements
The on-chain data analyst stated, “When long-dormant Bitcoins are moved, it typically leads to an increase in selling pressure in the market. During times of low liquidity, this can create downward pressure on prices, and this pressure has the potential to persist.”
