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Dormant Wallet Awakens: Is Bitcoin at Risk After 14,000 BTC Moves?
In a recent surge of activity, approximately 14,000 Bitcoins (BTC) have been moved from dormant wallets. This significant movement has raised concerns about the potential impact on the market and whether it poses an imminent risk to Bitcoin’s price. However, on-chain analysis suggests that there is no immediate sell pressure on the market.
The moved BTC did not transfer to any exchanges, implying that an immediate sale is unlikely. Interestingly, this development mirrors previous instances of similar activity where Bitcoin’s value remained unaffected. Moreover, the average acquisition cost of these dormant Bitcoins is relatively low, which could influence future sales decisions.
Currently, Bitcoin is trading at nearly $97,500, reflecting a minor increase over the past day.
Interestingly, retail Bitcoin investors who hold 1 BTC or less have seen a significant surge in accumulation rate since mid-December. This cohort has purchased an average of 10,627 BTC per day, which represents a 72% acceleration compared to last year’s daily average of 6,177 BTC. Conversely, large-scale holders, also known as “whales,” have been rapidly offloading their holdings at an exchange, averaging a staggering 32,509 BTC per day since November 24th. This marks a drastic increase in potential sell-side pressure, a whopping nine times higher than the yearly average.
This dichotomy highlights a stark divergence between market behaviors, with retail investors actively accumulating and whales distributing aggressively. Notably, these smaller investors have a history of selling into market strength when Bitcoin exceeds $100,000, which has previously occurred in November.
These ongoing trends hint at a redistribution of BTC from larger to smaller holders, potentially affecting the asset’s trajectory in the coming months.
In a separate development, institutions like Strategy, formerly known as MicroStrategy, have recommenced their Bitcoin accumulation. The company’s co-founder Michael Saylor recently announced the purchase of 7,633 BTC for $742.4 million at an average price of $97,255, bringing their overall holdings to 478,740 BTC acquired for a staggering $31.1 billion.
Source: cryptopotato.com
