The movement comes from Bitcoin’s recent rally to the 9-month high of $26,900.
A Bitcoin (BTC) whale just moved up to 3,200 tokens that had been dormant for three to five years. The tokens, currently valued at a whopping $84.9 million, were moved shortly after BTC reclaimed the 9-month high of $26,900 in its latest rally.
Maartun, a prominent analyst and verified CryptoQuant author, called public attention to the development today, citing data from the CryptoQuant Bitcoin: Spent Output Age Bands chart.
— Maartunn (@JA_Maartun) March 17, 2023
The timing of the recent movement has triggered apprehensions of an incoming selloff, mainly because Bitcoin is at its best position since June 2022. The last time such a large amount of 3 to 5-year-old BTC tokens moved on-chain was on Jan. 5, when BTC showed promise but was still trading below $17,000.
Moreover, it bears mentioning that BTC tokens that had been dormant for 5 and 7 years have also been gradually moving on-chain, with over 4,500 tokens reawakened in the past week. Amongst these, the largest intraday cluster of transactions involved 3,022 tokens on March 14.
Market intelligence platform Santiment also revealed that investors have recently resorted to raking profits from their BTC and ETH investments as profit-taking trades see a massive surge amid the recent rally. Notably, the number of BTC’s profit-taking trades is hitting highs last seen in December 2020.
🤑 With #Bitcoin jumping above $27k for the first time since June 12th, there are 2.4x as many profit transactions as loss transactions on the $BTC network since Wednesday. Markets are very polarized with #FOMO and drop fears both happening simultaneously. https://t.co/riPv1JYnfg pic.twitter.com/AsZ3485KDR
— Santiment (@santimentfeed) March 17, 2023
Long-Term Holders Unmoved
Notwithstanding, these movements do not represent the majority of assets held by long-term investors, as the Bitcoin Binary Coin Days Destroyed (CDD) metric reveals a low long-term holders’ movement in the past week.
Furthermore, blockchain intelligence resource IntoTheBlock disclosed today that long-term BTC holders have continued to hold onto their assets despite the latest price surge. According to IntoTheBlock, the number of BTC addresses holding tokens for at least a year has increased to a new all-time high.
Bitcoin holders continue to hodl. The $BTC owned by addresses holding for over one year reaches a new all-time high. With over two-thirds of all circulating supply in their bags, history suggests this group is unlikely to start selling their holdings until we reach close to the… https://t.co/rvSqr3Yb6C pic.twitter.com/LtjgZQpuCV
— IntoTheBlock (@intotheblock) March 17, 2023
Meanwhile, Bitcoin’s mission to establish a comfortable position above $27,000 remains on track, as the asset recently engineered a comeback against the bears following a drop to $26,200 a few hours ago. BTC is changing hands at $26,546, up 7% in the past 24 hours.