Dormant BTC Declines as Long-Term Holders Respond to Market Conditions

IconCryptoNewsTerminal Staff02 Aug, 2024

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Dormant BTC Declines as Long-Term Holders Respond to Market Conditions

CryptoSlate reports that the percentage of Bitcoin (BTC) that has remained dormant for over a year has declined from 70% to 66% since the start of the year, indicating long-term holders are responding to market conditions by moving their coins. Grayscale GBTC holders have been consistently redeeming and moving their BTC since the January ETF conversion. Historically, the dormancy/supply ratio has had some correlation with price action, so the recent decline in dormant BTC could suggest that liquidity and trading activity have increased.

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