Bitcoin’s dormant supply has decreased to 66% in the last 12 months, down from 70% at the beginning of 2024. This drop in dormant supply indicates that long-term holders are starting to move their assets, possibly in response to changing market conditions. The decline in dormant supply could also be attributed to Grayscale GBTC holders distributing their coins following the launch of the ETF in January.
Historically, changes in the dormant supply percentage have been linked to significant price movements in Bitcoin. The current trend suggests increased liquidity and trading activity in the market. Despite fluctuations in price, Bitcoin has mostly stayed within the $60,000 to $70,000 range since February, indicating a relatively stable market.
The movement of previously dormant coins reflects a shift in holder behavior, showing the market’s adaptability following major events like the recent halving. Investors are strategically reallocating their assets in response to changing market dynamics.
Overall, the decrease in Bitcoin’s dormant supply highlights the evolving nature of the market and the behavior of long-term holders. This trend could potentially impact price movements in the future as more coins are moved from long-term storage to active trading. Investors should pay attention to these changes in dormant supply as they could provide insights into the overall market sentiment and potential price trends.