Bitcoin Historic Coins Activity Surges to 13-year High, Signals Potential Bull Run


Despite Bitcoin’s recent struggles to maintain an upward trajectory, a fascinating twist has emerged, as per the on-chain data shared by Ki Young Ju, the pioneering mind behind CryptoQuant. An unexpected surge in the activity of historic coins has raised a few eyebrows, hitting a 13-year high, as indicated by the Bitcoin Average Dormancy chart.

The Bitcoin Average Dormancy chart provides insights regarding the average number of days each Bitcoin remains dormant. This intriguing data suggests a shift in the ownership of coins held for 3 to 5 years.

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The exceptionality of the data lies in the peculiar point that these coins were not shuffled towards exchanges in this time of activity. Contrarily, it can be surmised that these coins were likely traded over the counter (OTC).

Generally, a transfer of coins to centralized exchanges such as Binance or Coinbase could hint at a desire to sell. The transfer of a higher volume of coins to these exchanges, especially from substantial holders known as whales, often precedes a potential price drop. If trades are conducted via OTC, however, the likelihood of affecting spot rates is negligible, which can be interpreted as a favorable scenario for bullish supporters.

Delving further into these transfers using the Spent Output Profit Ratio (SOPR) indicator offers another layer of intrigue. It appears that the whales in question managed to garner substantial profits as a result of these movements. Traditionally, a trend of whales securing profits usually precedes a dip in prices.

However, casting a spotlight on a recent analysis shared on a forum suggests a likelihood of prices inching upwards due to the influence of spot Bitcoin exchange-traded funds (ETFs). These financial derivatives serve as a considerable buffer against price drops, given their notable pace of inflows in recent weeks.

Spot ETFs provide institutions with a regulated means to have exposure to Bitcoin, and with decreasing outflows from the Grayscale Bitcoin Trust (GBTC), the probability of prices surging remains high. As highlighted by Lookonchain data, GBTC discharged a considerable 750 BTC on April 23. On the flip side, Fidelity and eight other spot ETF issuers bought a significant 1,513 BTC on behalf of their clients.

Though BTC prices are currently quiet, falling short of the $68,000 mark that represents the highs of April 13, the situation could change with volume expansion above this liquidation line, effectively reversing recent losses.

Consideration of the BTCUSDT candlestick arrangement on the daily chart implies that a breakthrough above all-time highs on behalf of the bulls is necessary for the trend to continue. Ideal conditions would require the uptick above the significant $73,800 mark and the current range to accompany expanding volumes, confirming the existence of buyers. Would Bitcoin then be on the road to unprecedented heights? Only time will tell.