United

Bitcoin

Read

Despite market enthusiasm, the amount of Bitcoin lying dormant in digital wallets is hovering at low levels. 
Low dormant Bitcoin (<a href="https://crypto.news/price/bitcoin/">BTC</a>) levels are a potential warning sign for the cryptocurrency. The reason is that spikes in dormant Bitcoin usually preceded rallies, given that dormant Bitcoin is not being sold, effectively resulting in a lower circulating supply. Long-term investors have likely decided to take profit amid ongoing market enthusiasm. 
Only 1,832 BTC have gone without spending over the past two years, down sharply from over 30,000 in late December, according to data from the blockchain analytics firm Glassnode. Such low dormancy levels for the world’s largest cryptocurrency frequently precede major price swings. 
<figure class="wp-block-image size-large">
 <img loading="lazy" decoding="async" width="1024" height="347" src="https://crypto.news/app/uploads/2024/01/Bitcoin-BTC-19.21.22-02-Jan-2024-1024x347.png" alt="Dormant Bitcoin at low numbers amid presumed profit taking - 26" class="wp-image-14233680">
 <figcaption class="wp-element-caption">
 Dormant Bitcoin two-year chart | Source: Santiment
 </figcaption>
</figure> 
 You might also like: <a href="https://crypto.news/bitcoins-strong-recovery-in-2023-outshines-gold-and-sp-500/"> Bitcoin’s strong recovery in 2023 outshines gold and S&amp;P 500 </a> 
When dormancy runs high, it suggests Bitcoin holders believe they’re better off doing nothing with their stash. Low dormancy levels indicate more holders are on the move, possibly to sell or trade. The number of Bitcoins lying untouched for five years has also declined, from almost 16,400 in December to around 300. 
<figure class="wp-block-image size-large">
 <img loading="lazy" decoding="async" width="1024" height="347" src="https://crypto.news/app/uploads/2024/01/Bitcoin-BTC-19.23.26-02-Jan-2024-1024x347.png" alt="Dormant Bitcoin at low numbers amid presumed profit taking - 27" class="wp-image-14233681">
 <figcaption class="wp-element-caption">
 Dormant Bitcoin five-year chart | Source: Santiment
 </figcaption>
</figure> 
Bitcoin is also currently trending on social media, with Santiment indicating that it has topped its social dominance chart, responsible for 3.5% of all the detected crypto-related social media posts. The summary of the trend suggests that it is mostly discussed in anticipation of the approval of a <a href="https://crypto.news/polymarket-investors-confident-of-spot-bitcoin-etf-nod-by-jan-15/">spot Bitcoin</a> exchange-traded fund by the United States Securities and Exchange Commission (SEC) — which apparently many long-term holders have seen as an occasion to sell high. 
 Read more: <a href="https://crypto.news/bitcoin-breaks-the-45k-zone-indicator-suggests-a-further-rally/"> Bitcoin breaks the $45k zone, indicator suggests a further rally </a>

Dormant Bitcoin at low numbers amid presumed profit taking

crypto.news

Other articles published on Jan 2, 2024

LUNC and USTC Nosedive After Burn Proposal Rejection, What’s Next?

Jim Cramer declares Bitcoin Indestructible in financial markets

Machine learning algorithm sets SHIB price for January 31, 2024

Harnessing Conversational AI for a Competitive Edge in 2024

Bitcoin Price Achieves $45,000 Mark! BTC Price To Hit $50,000 During This Month?

Grayscale Amends S-3 Filing as Spot Bitcoin ETF Decision Looms

Join our free newsletter for daily crypto updates!