Bitcoin Long-Term Holders Move 8,511 BTC Amid Price Surge

In the midst of Bitcoin's recent price surge, long-term holders have begun to move their coins, signaling a potential shift in market dynamics. According to CryptQuant analyst Maartunn, 8,511 BTC from the 3-5 year age band moved on-chain over the last day. This marks the 22nd instance this year where over 5,000 BTC from this cohort has been reactivated, indicating a significant level of activity among long-term holders.

The reactivation of these older coins has led to a rise in the 90-day Coin Days Destroyed (CDD), suggesting that as Bitcoin’s price climbs, older coins are being redistributed, potentially reaching new market participants. In the past day, CDD spiked from 5 million to 29 million, signaling fresh demand. Additionally, the average dormancy fell from 42 to 33, indicating that new buyers are actively entering the market.

Assessing the source of this movement, Maartunn noted that the latest transfer of old Bitcoin appears to have originated from Grayscale, which moved the BTC to newly created addresses. However, it remains uncertain whether this volume reflects actual ownership changes or an internal adjustment. Historically, Grayscale’s ETF flows have sometimes been negative, and these movements may be linked to upcoming or recent outflows. Exchange Netflow data suggests this transfer is likely an internal reshuffling, meaning the reactivated BTC has not been deposited into exchanges.

Exchange Netflow data shows that Bitcoin has recorded three consecutive days of negative value, indicating more withdrawals than deposits, which is usually a bullish signal. Looking at CDD, it currently sits at 23.8 million, a decline from 29 million, marking a 6 million drop over the last day. This drop suggests that large holders have started to reduce their expenditure after the recent surge, often interpreted as bullish, as long-term holders are starting to take a step back in the market.

While the movement of old coins can raise concerns, this recent transfer was not directly deposited into the exchanges. The reactivated Bitcoin remains in private wallets, meaning it has not negatively affected price action. Accumulators still dominate the market, reinforcing a bullish outlook. However, if Grayscale decides to sell these coins, it could trigger outflows and push BTC down to $104K. On the other hand, if current conditions persist, Bitcoin’s uptrend is likely to continue, potentially surpassing $107K and reaching $108K.