16,000 Bitcoin Dormant Since 5+ Years Suddenly Moves, What’s Going On?
February 19 2024 - 10:00AM
NEWSBTC
On-chain data shows 16,000 BTC, which have been dormant for 5-7
years, have finally shown some movement on the Bitcoin blockchain.
5-7 Years Old Bitcoin Age Band Has Made A Large Move As pointed out
by an analyst in a post on X, a large stack of dormant coins has
moved across the network today. The relevant on-chain indicator
here is the “Spent Output Age Bands” (SOAB), which keeps track of
the movements of the various Age Bands on the blockchain. “Age
Bands” here refer to groups of coins divided based on their total
holding time. For example, the 1-month to 3-month Age Band would
include all coins that have been dormant (that is, staying inside
the same address) since between one and three months ago. Related
Reading: Bitcoin Short-Term Holders Just Locked In $647 Million In
Profits If a large number of coins belonging to this holding time
range would transfer on the blockchain, then the SOAB for this
particular Age Band would register a spike. In the context of the
current discussion, the 5-7 years Age Band is of interest. The
chart below shows the recent SOAB data for this Age Band
specifically: Looks like the value of the metric has just
registered a large spike | Source: @binhdangg1 on X As displayed in
the above graph, a large amount of coins aged between 5-7years old
appear to have just been moved on the network as the corresponding
Age Band has registered a spike. This Age Band is a segment of the
wider and “long-term holder” (LTH) group, which includes investors
who have been holding onto their coins since at least 155 days ago.
Statistically, the longer a holder keeps their coins dormant, the
less likely they become to sell at any point. As such, the LTHs are
generally considered to be more resolute than the rest of the
market (the “short-term holders“). Since the 5-7 years Age Band
would include coins that are old even in LTH terms, their owners
would have to be diamond hands among diamond hands. Due to this
reason, it can be something notable when such ancient entities
finally decide to break their silence. Related Reading: Cardano
(ADA) To Break $8 In Bull Run: Analyst Predicts Timeline During the
latest SOAB spike, these investors have moved a massive stack of
16,000 BTC (around $837.8 million at the current exchange rate).
Now, what implications this move may have on the market depends on
what these investors intend to achieve with it. A dive deeper into
on-chain data suggests the move was an outflow from the
cryptocurrency exchange Coinbase, as the chart below shows: The
value of the metric appears to have been quite high in the past day
| Source: @binhdangg1 on X The fact that it is an outflow may be a
positive sign for Bitcoin, as it means that selling may not have
been the goal here. Rather, the move implies the whale entity
behind it may be moving towards self-custody to HODL further, or a
large buyer like an ETF is gobbling this BTC up. BTC Price Bitcoin
had made a visit down to $50,600 during the weekend, but the
cryptocurrency already appears to have bounced back as its price is
now floating around the $52,400 level. The price of the coin
appears to have overall moved sideways over the last few days |
Source: BTCUSD on TradingView Featured image from Erling Løken
Andersen on Unsplash.com, CryptoQuant.com, chart from
TradingView.com
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