Activity in Bitcoin shows a clear rise in dormant coins, which could be a sign of an accumulation trend.
Although the price of Bitcoin is not in the best moment, the dormant activity of its holders seems to increase. Thus, bitcoiners seem to be accumulating coins in anticipation of a possible bull run that would be at hand.
Currently, the latest momentum in the coin’s price appears to be losing steam and remains just above $27,000. If it did not hold above that barrier, this would have been a new failed attempt to break out of the downtrend and stagnation. The latter predominates during the second half of 2023.
However, the community is expecting a catalyst that, probably in a few months, will lift the crypto market out of the current ditch. In this way, the sector wants to receive this hypothetical upward trend with the best possible preparation. This translates into accumulating and lowering the pace of commercial activity.
Bitcoin’s Current Dormant Activity
With the halving and a possible approval of a spot ETF, Bitcoin’s dormant activity seems to intensify in anticipation of the rise. Both cases are considered bullish elements for the price. For example, halving has historically ended with large price increases, although not in the immediate term.
On the other hand, the approval of a spot ETF by the SEC would open the doors to institutional investors. In that sense, institutional demand would grow strongly, causing the price of the pioneering digital currency to rise.
Glassnode data clearly shows how holders are waiting for the rise. On exchanges, coins that haven’t moved for 1-5 years are near all-time highs right now. This trend would have intensified since July year.
Consequently, 68.5% or 36.7 million of the addresses that have held BTC for a year or more did not make any movements. These data are equivalent to the CoinMarketCap measurement. It can be said that the most committed investors know that an uptrend is much closer than many assume and hence their dormant activity with Bitcoin.
Given this scenario, investor David Battaglia published a reflection pointing out that, for him, selling BTC at this time is a wrong move due to its bullish potential and the advantages it offers over other existing currencies.
Exchange Exits Also On the Rise
Withdrawals of BTC coins from centralized exchanges are also on the rise. This has two components: the first is the distrust of users towards these platforms and the second is the transfer towards long-term accumulation portfolios.
The same statistics site shows the degree of decline in balances, which also applies to ETH. Until now, Binance, the most important exchange in the world, remains the largest holder of coins under management. However, it is also the one that has experienced the greatest outflow in recent weeks.
Of the top 10 largest exchanges, only OKX maintained a larger BTC inflow than outflows recently. All of this leads to increased dormant Bitcoin activity, which portends a possible bull run in the price of it and the rest of the digital currencies.
On the other hand, there are those who claim that the price of BTC must still hit bottom in order to start an upward trend. Among these, Bloomberg Intelligence analyst Jamie Coutts stands out, who recently stated that the currency entered a selling position.
By Audy Castaneda
