Dormant Wallet Awakens: Assessing Bitcoin’s Risk After BTC Movements
Approximately 14,000 dormant bitcoins were moved on February 10 without being sent to exchanges, indicating low immediate sell-off risk. Retail investors have increased their accumulation significantly, while whales are offloading at a much higher rate. Institutional purchases are ongoing, exemplified by Strategy’s recent acquisition of 7,633 BTC, solidifying their dominant position in the market.
On February 10th, approximately 14,000 bitcoins that had been dormant for 7 to 10 years were moved. Importantly, these bitcoins were not transferred to exchanges, suggesting that an immediate sale is unlikely. Historical trends indicate that such activity does not consistently lead to a decline in Bitcoin’s value, as highlighted by an analysis from CryptoQuant.
The current market dynamics reveal a stark contrast between accumulating retail investors and distributing whale holders. With institutional players like Strategy continuing to build their Bitcoin reserves, the asset’s long-term trajectory could be significantly influenced. Although recent movements of dormant Bitcoin raised concerns, the market’s resilience is evident, reflecting a complex interplay among different types of holders.
Original Source: www.binance.com
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