1,433 BTC dormant for over 10 years has been moved, indicating a bearish signal for Bitcoin.
The movement of a large amount of Bitcoin that has been dormant for more than 10 years has been detected through on-chain data, which could indicate a bearish trend for its price. The movement of these dormant coins may be a sign of selling, as suggested by the “Spent Output Age Bands” (SOAB) indicator, which tracks the movements of different age bands on the blockchain. The 10+ years age band, which includes all coins that haven’t moved from a single address in over 10 years, is the cohort of interest in this context. The SOAB metric shows that around 1,433 BTC has moved across wallets on the network, indicating a surge in the metric.
The long-term holder (LTH) group, which includes all investors that have been holding their coins for more than 155 days, is statistically less likely to sell their coins. However, the movement of coins from an investor who has held them for more than 10+ years suggests that the holder is one of the oldest even among the LTHs. It is possible that the wallet activation today may have come from a user rediscovering a previously lost wallet, as old supply is usually considered lost due to wallet seed phrases becoming inaccessible.
While movements from LTHs are usually a bad sign for the market, as they show even the diamond hands may have lost their belief in Bitcoin, this latest transaction may not reflect the general sentiment due to the special circumstances surrounding it. Nonetheless, the transfer is still a probable sign that the coins are being moved around for selling-related purposes, which could have a bearish impact on the asset’s price. At the time of writing, Bitcoin is trading around $26,400, down 2% in the last week.
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