Key Points
- Long-term Bitcoin holders are moving their coins amid Bitcoin’s price surge.
- The latest movement of old Bitcoin seems to have originated from Grayscale, potentially reaching new market participants.
Long-term holders of Bitcoin (BTC) are beginning to move their coins as the cryptocurrency experiences a price surge.
CryptQuant analyst Maartunn reports that 8,511 BTC from the 3-5 year age band moved on-chain in the past day. This marks the 22nd time this year that over 5k BTC from this cohort has been reactivated.
Movement Triggers Rise in Coin Days Destroyed
The reactivation of these coins has led to an increase in the 90-day Coin Days Destroyed (CDD). This suggests that as Bitcoin’s price increases, older coins are being redistributed, potentially reaching new market participants.
In the past day, CDD has spiked from 5 million to 29 million, indicating fresh demand. Additionally, the average dormancy fell from 42 to 33, suggesting that new buyers are actively entering the market.
Assessing Grayscale’s Bitcoin Transfer
According to Maartunn, the latest movement of old Bitcoin appears to have originated from Grayscale. The company transferred the BTC to newly created addresses. However, it’s unclear 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. However, Exchange Netflow data suggests this transfer is likely an internal reshuffling, meaning the reactivated BTC has not been deposited into exchanges.
Exchange Netflow shows that Bitcoin has recorded three consecutive days of negative value. A sustained period of negative netflow indicates markets are seeing 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. This marked a 6 million drop over the last day. A drop here suggests that large holders have started to reduce their expenditure after the recent surge.
This is often interpreted as bullish, as long-term holders are starting to take a step back in the market.
Impact on BTC
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. Conversely, if current conditions persist, Bitcoin’s uptrend is likely to continue, potentially surpassing $107K and reaching $108K.
