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The Bitcoin network is witnessing a remarkable phenomenon: the reawakening of ancient BTC whales. These entities, which have not moved their holdings for over a decade, are now resurfacing, contributing to a significant spike in on-chain activity.
This surge in activity among long-dormant Bitcoin addresses marks a significant trend in this current market cycle, reflecting an increase in the movement of old BTC holdings.
According to Julio Moreno, the head of research at CryptoQuant, This current cycle has awakened more Bitcoin OG’s than ever. The 10+ year-old Bitcoin spending indicator reached a record high of 3.7% in March, when Bitcoin traded near $70,000, Moreno added.
This cycle has awaken more Bitcoin OG’s than ever.
10+ year-old #Bitcoin spending reached a record high of 3.7% in March, when Bitcoin was at $70K. Right now is at 2.5%.
The % is the 30-day cumulative spending annualized of Bitcoin with more than 10 years-old. pic.twitter.com/p826rX3tXQ
— Julio Moreno (@jjcmoreno) May 24, 2024
Interestingly, this indicator is currently at 2.5%, which represents the 30-day cumulative spending annualized of Bitcoin with more than 10 years old. This uptick is not far from the record high of 3.7% observed in March, signaling the resurgence of Bitcoin ancient whales.
The term “ancient whales” refers to the earliest adopters of Bitcoin, who mined or purchased the cryptocurrency when it was in its infancy and far less valuable than it is today.
As reported in the week, an early Bitcoin miner from the Satoshi era has moved 2,000 BTC coins mined way back in 2010.
The reactivation of these ancient Bitcoin wallets is not merely a curiosity but a significant event that could have profound implications for the market. The spending of such old coins is a rarity, and when it happens, it is monitored closely for potential impacts on market dynamics.
Old Bitcoin miners and whales often act as a source of liquidity and distribution, hence the attention such moves get.
The cryptocurrency community and market analysts are closely monitoring this trend. Some view the reactivation of old addresses as a natural progression as Bitcoin matures as an asset class. Others are more cautious, considering it a sign of potential market cooling or preparation for a major price move.
At the time of writing, BTC was up 2.86% in the last 24 hours to $69,126, extending its rebound from May 23 lows of $66,259.
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