Bitcoin News Today: Bitcoin dormant supply reactivates 2.4% as analysts link to potential price surge signals

Bitcoin’s dormant supply is showing signs of reactivation, with dormant coins gradually re-entering circulation—a development that analysts and market observers are interpreting as a potential precursor to significant price movements. Cryptocurrency analyst Axel Adler highlights that the market remains in the early stages of its macrocycle, noting that the return of long-dormant Bitcoin to active wallets has sparked notable shifts in supply dynamics without triggering immediate selling pressure. Adler’s analysis underscores that while the percentage of activated coins has risen to 2.4% in the last 30 days, this figure remains below historical peaks observed during previous price surges in 2024, suggesting that supply pressure remains contained [1].

Historical data from Adler’s research reveals two key moments of increased supply activity: a 20% activation rate in spring 2024 when Bitcoin reached $70,000, and an 18% rate in December 2024 after the price surpassed $100,000. These movements coincided with the redistribution of “sleeper coins,” dormant assets mobilized as investors reallocated capital amid price surges. Adler forecasts that the current trajectory—where active supply ratios may rise to 8–10% before climbing again to 18–20%—could signal the start of a final distribution phase if Bitcoin consolidates above $120,000 [1].

The trend extends beyond supply-side metrics. Market behavior indicates a broader shift in investor strategy, with altcoin holders increasingly rotating profits into Bitcoin. This reallocation, observed in July 2025, reflects a preference for Bitcoin as a stable store of value amid heightened volatility in alternative cryptocurrencies. Analysts note that such behavior reinforces Bitcoin’s role as a hedge against market uncertainty, even as other digital assets remain active [1].

Interconnectedness between Bitcoin and the broader crypto market further amplifies the implications of dormant coin reactivation. Studies from 2025 show that Bitcoin’s price movements can drive cascading effects across the ecosystem, influencing sentiment and capital flows for other assets. This dynamic creates a feedback loop where Bitcoin’s price discovery process accelerates as dormant coins become operational [2].

Behavioral trends also play a role. Data suggests that 84% of crypto investors have made decisions influenced by emotional factors like FOMO (fear of missing out). As these investors reallocate capital, Bitcoin’s dominance could expand, particularly if demand aligns with the gradual unlocking of previously inactive holdings [5].

On-chain metrics provide additional context. Increased transaction volume and reduced wallet turnover indicate a steady injection of liquidity into the market. Analysts argue that this liquidity, combined with growing institutional adoption and retail participation, could create upward pressure on Bitcoin’s price. However, concrete confirmation remains pending, as market participants await further evidence that the reactivation of dormant coins will sustain momentum [4].

The evolving landscape presents both opportunities and risks. A potential price breakout remains speculative, but the interplay between behavioral trends, portfolio reallocations, and systemic interconnectedness has created a unique environment for Bitcoin’s trajectory. As of July 2025, the market is watching for signs that the “sleeping” coins will maintain their momentum in circulation, with Adler’s projected supply thresholds serving as key benchmarks [1].

Sources:

[1] Sleeping Bitcoins Are Waking Up and Entering Circulation: What Does This Mean? What Can We Expect? [https://coinmarketcap.com/community/articles/68814d49439cf10408b23cba/]

[2] Navigating Risk in Crypto Markets: Connectedness and..., [https://www.mdpi.com/2227-9091/13/8/141]

[4] Cloud Mining Rises as DOGE Traders Cash Out, [https://www.ibtimes.com.au/cloud-mining-rises-doge-traders-cash-out-deal-mining-leads-passive-income-revolution-1859788]

[5] Are You One of the 84% Who've Made Crypto Decisions..., [https://www.aol.com/one-84-whove-made-crypto-103000150.html?utm_content=AOLcom/magazine/Business&utm_source=flipboard]