Bitcoin’s network experienced significant on-chain activity this week, with dormant assets being reintroduced into circulation. Data from Santiment highlights a notable surge in dormant Bitcoin transactions, with $37.4 billion in volume recorded on a single day. This marks the highest daily on-chain transaction volume since March 12, signaling a potential shift in market dynamics. A giant whale withdrawal from Binance further underscores this trend, emphasizing the reactivation of previously inactive Bitcoin.
🐳 Referring to the Tuesday whale transaction highlighted by @lookonchain, our own metrics indicate a major spike in dormant activity on Bitcoin’s network to pair with $37.4B in on-chain volume Tuesday, the most in 7 months. Historically, stagnant BTC moving back into regular… https://t.co/l0K5Df2FAM pic.twitter.com/iMnywyx1hs
— Santiment (@santimentfeed) October 9, 2024
Spike in Dormant Bitcoin Transactions
Santiment’s analysis of the Bitcoin network revealed that a large portion of the $37.4 billion daily volume consisted of older Bitcoin, which had been inactive for a significant period. This spike in “age consumed” metrics indicates that long-dormant assets were moved back into circulation, potentially signaling renewed activity from institutional players or long-term holders. A noteworthy example included a $15.6 million transaction from Binance, contributing to the large movement seen on the network.
This return of stagnant Bitcoin into circulation is generally seen as a positive indicator for future market movements. Historically, increased activity from dormant addresses has often preceded price changes. The involvement of older Bitcoin increases the significance of the day’s transaction volume. This suggests that whale activity or major institutional transfers may be influencing the market.
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Whale Activity and Market Impact
Lookonchain particularly issued an alert regarding a massive whale withdrawal from Binance. The whale, who had been dormant for six months, withdrew 250 BTC, valued at $15.6 million, just an hour before the alert. The whale had previously accumulated over 10,158 BTC at an average price of $67,026 between March 14 and April 13, during Bitcoin’s all-time highs. However, based on Bitcoin’s current price of around $62k, this whale has sustained a substantial loss of $46 million, underscoring the volatility and risks involved in large-scale Bitcoin holdings.
The whale’s actions align with the larger movement of dormant assets on the network. This shows that big shifts in whale activity can impact the market.
Current Market Dynamics
As of the latest reports, Bitcoin’s price stands at $62,243.11 at press time, reflecting a minor decline of 0.06% over the past 24 hours. Despite this small drop, Bitcoin has shown a 1.01% price increase over the past seven days, maintaining relative stability in a volatile market. The 24-hour trading volume of $27 billion illustrates sustained interest and activity, particularly in light of the significant whale movements and large dormant asset transactions that took place earlier in the week.
