Bitcoin has been making headlines lately with its impressive price performance, soaring to local highs above $25,000. However, a recent development has caught the attention of the crypto community: a sudden rise in the number of Bitcoin wallets that have been dormant for five to seven years.
According to data from blockchain analytics firm Glassnode, more than 1.6 million Bitcoin have not been moved on addresses that have been inactive for at least five years. This sudden drop in activity from older wallets has led some to speculate that long-term holders aren't taking profits as Bitcoin's price continues to rise.
📈 #Bitcoin $BTC Amount of Supply Last Active 5y-7y just reached a 5-year high of 1,611,029.492 BTC— glassnode alerts (@glassnodealerts) February 19, 2023
View metric:https://t.co/1iBTMZ79br pic.twitter.com/XhuQ5BDw6W
Bitcoin's recent price performance has been nothing short of impressive, with the cryptocurrency gaining more than 40% to its value since the beginning of this year. However, the market has also experienced some volatility, with Bitcoin experiencing several sharp price drops in the last year.
Despite these setbacks, Bitcoin managed to recover and continue its upward trajectory. Additionally, the descending activity of long-dormant wallets could indicate that the market is entering a new phase, with long-term holders accumulating more assets.
It remains to be seen whether the drop in activity from old Bitcoin wallets will have a significant impact on Bitcoin's price performance in the coming weeks and months, however, the signals' nature overall is considered positive for the asset.