U.Today – The network is witnessing a remarkable phenomenon: the awakening of the ancient BTC whales. These entities, which have not moved their holdings for over a decade, are now re-emerging, contributing to a significant increase in on-chain activity.
This increase in activity among long-dormant Bitcoin addresses marks a significant trend in this current market cycle, reflecting an increase in the movement of old BTC holdings.
According to Julio Moreno, head of research at CryptoQuant, this current cycle has sparked more Bitcoin OGs than ever. The 10+ year Bitcoin spending indicator hit a record high of 3.7% in March, when Bitcoin was trading near $70,000, Moreno added.
Interestingly, this indicator is currently at 2.5%, which represents the annualized 30-day cumulative spending of Bitcoin that is over 10 years old. This rally is not far from the record 3.7% seen in March, indicating the resurgence of former Bitcoin whales.
The term “ancient whales” refers to early adopters of Bitcoin, who mined or purchased the cryptocurrency when it was in its infancy and much less valuable than it is today.
As reported in the week, one of the first Bitcoin miners of the Satoshi era moved 2,000 BTC coins mined back in 2010.
The revival of these old Bitcoin wallets is not simply a curiosity but a major development that could have profound implications for the market. Spending of such old coins is a rarity and when it occurs, it is closely monitored for potential impacts on market dynamics.
Former Bitcoin miners and whales often act as a source of liquidity and distribution, hence the attention these movements receive.
The cryptocurrency community and market analysts are closely following this trend. Some see the revival of old addresses as a natural progression as Bitcoin matures as an asset class. Others are more cautious and consider it a sign of a possible market cooling or preparation for a major price movement.
At the time of writing, BTC was up 2.86% in the last 24 hours to $69,126, extending its bounce from May 23 lows of $66,259.
This article was originally published on U.Today.
