Bitcoin’s on-chain activity has seen significant movement recently, with long-dormant wallets springing to life. Over $60 million in Bitcoin, previously untouched for a decade, was transferred, prompting market speculation and analysis.

These whales stirred a bullish sentiment. Consequently, the Bitcoin price, as of press time, is $62,920.89, up 3%. It has a 24-hour trading volume of $21,471,618,887 and a market cap of $1,239,393,651,685.

BTC/USD 24-hour price chart (source: CoinMarketCap)

Dormant Wallets Wake Up

On May 12, 2024, two Bitcoin addresses, dormant for over ten years, suddenly moved 1,000 BTC, worth approximately $62.8 million. Each address transferred 500 BTC, with the first transaction occurring at 9:46 a.m. UTC (4:46 a.m. ET) and the second 20 minutes later. These addresses had initially received 500 BTC each on September 12, 2013, when Bitcoin was trading at about $124.

The funds from the first address were subsequently distributed to multiple other addresses, whereas the BTC from the second address remains untransferred. Given the identical amounts and timing, it is plausible that both addresses belong to the same entity.

Recent Whale Movements

This activity follows a pattern of similar large movements within the Bitcoin ecosystem. Just last week, another dormant wallet moved 687.33 BTC, worth over $44 million, for the first time in a decade. 

In March, a significant transfer of $6 billion was made from one of the richest Bitcoin addresses, which has been dormant since 2019. Additionally, $140 million in Bitcoin, mined in 2010, was consolidated into a single wallet during the same month.

These movements highlight a trend where long-term holders, often referred to as ‘whales,’ are beginning to reactivate their holdings. This resurgence could indicate shifts in market sentiment or strategic repositioning of assets.

Bitcoin Price Analysis

Despite the recent BTC uptick, the cryptocurrency remains under pressure, struggling to surpass the $64,000 resistance level. Analysts warn that failure to reclaim this level could lead to a drop below $52,000.

The reactivation of dormant wallets often triggers market speculation, with concerns about potential large-scale sell-offs that could drive prices down. However, it can also be interpreted as a sign of confidence in Bitcoin’s future value, as long-term holders decide to move their assets for various reasons, such as consolidating funds or preparing for future transactions.

Bitcoin’s price action has been notably volatile. Crypto analyst Ali Martinez suggests that reclaiming $64,290 as a support level could pave the way for a bullish trend towards $76,610. Conversely, failure to break this threshold may result in a drop to $51,970. This analysis underscores the importance of the $64,290 level in Bitcoin’s short-term trajectory.

Other market analysts, like Michael van de Poppe, echo these sentiments. He notes that Bitcoin’s ability to maintain support above $60,000 is crucial. A failure to do so could lead to a downward movement towards the $52,000 to $55,000 range, while breaking above $63,000 could push Bitcoin toward $70,000 to $72,000.

Decline in On-Chain Activity

Recent data from Santiment indicates a notable decline in Bitcoin’s on-chain activity, with transactions nearing historic lows. This trend suggests a period of heightened caution among investors, reflecting a prevailing sense of fear and uncertainty in the market. Despite this, long-term holders continue to maintain their positions, suggesting a level of confidence in Bitcoin’s long-term value.

BTC Onchain Activity

The Long-Term Holder Spending Binary Indicator highlights that long-term holders have ceased significant selling activity, a positive sign for market stability. This behavior indicates that long-term holders, despite previous selling during high prices, are now holding firm.

Consequently, the broader market sentiment remains mixed. While institutional interest continues to grow, as evidenced by large holdings from major financial institutions like JPMorgan and Wells Fargo in various Bitcoin ETFs, retail investor activity appears subdued.