Dormant Bitcoin Activity Hits Lowest Level Since Q3 2022, Galaxy Research Says

BitcoinWorld

Dormant Bitcoin Activity Hits Lowest Level Since Q3 2022, Galaxy Research Says

On-chain data reveals that dormant Bitcoin activity has fallen to its lowest level since the third quarter of 2022, according to a recent report from Galaxy Research. The decline indicates that long-term holders are increasingly reluctant to part with their assets, a trend that typically reduces sell pressure in the market.

What the Data Shows

Galaxy Research, the analytics arm of Galaxy Digital, observed that between August 16 and 26, only 553 BTC moved from six old wallets. The firm described this as an exceptional case rather than a typical pattern, emphasizing that when older coins do not move, they do not flow to exchanges, do not create selling pressure, and do not test market liquidity. This behavior suggests that long-term holders are overwhelmingly more likely to maintain their positions than sell, a sentiment that has historically preceded bullish price movements.

Market Implications and Context

The reduced dormancy comes at a time when Bitcoin is testing the $81,000 mark, supported by momentum from U.S. government Treasury purchases. Galaxy Research believes this trend supports further upside rather than downside, as lower circulating supply pressure reduces resistance to price gains. The current structural outlook remains positive, with the firm pointing to a decrease in the amount of Bitcoin available for trading as a key factor in the market’s resilience.