Dormant Bitcoin Awakens: 8,007 BTC Moved, Market Braces for Impact

Bitcoin's (BTC) price has been struggling to gain momentum, with the cryptocurrency remaining in the red despite recent attempts at a rebound. This comes as a significant amount of dormant BTC has been moved on-chain, raising speculation about potential market impact. According to CryptoQuant analyst Martuun, 8,007 BTC, aged between three and five years, have just become active. When long-inactive Bitcoin moves, it sometimes indicates that holders might be preparing to sell, consolidating holdings, or shifting funds for security reasons, among other reasons.

Bitcoin's price has been volatile in recent days, with the cryptocurrency falling to fresh lows on Wednesday before staging a slight recovery. At the time of writing, Bitcoin was down 3.3% in the last 24 hours to $86,076, after falling from Monday to Wednesday. The 12.6% loss over the last three days remains the largest since FTX's bankruptcy in November 2022. Bitcoin's failure to sustain a recovery suggests that broader macroeconomic factors and investor sentiment continue to weigh on price action.

Market analysts are now looking for macroeconomic indicators to support a Bitcoin rally in the near term. However, the recent Bybit hack, which resulted in the loss of 403,996 ETH (almost $1.13 billion) from its cold wallets, has added to the market's volatility. The hack resulted in panic withdrawals, with total exchange outflows of almost $4.3 billion across Bitcoin and stablecoins. Market sentiment quickly deteriorated, resulting in a broad sell-off. Bitcoin's monthly performance fell to -13.6%, returning it to the realized supply "air gap" of $70,000 to $88,000, a zone with a low-cost-basis density. If demand fails to revive, greater downside risk remains, making the next few weeks important in determining whether Bitcoin stabilizes or capitulates further.