1-6-2025 – A subtle yet significant shift in Bitcoin’s on-chain dynamics has caught the attention of market observers, as fresh data reveals intriguing patterns in the movement of long-held coins. Analyst Yonsei_dent, writing for CryptoQuant, has pointed to a rising trend in Average Dormancy, a metric that tracks the duration coins remain untouched before being spent. This uptick signals that long-term holders, often dubbed “HODLers,” are beginning to unlock their stashes, spurred into action by Bitcoin’s recent climb beyond the $100,000 mark. The resurgence of these previously idle coins suggests that seasoned investors are seizing the moment to capitalise on the cryptocurrency’s bullish run.
Yet, this movement of dormant coins is not matched by robust market activity elsewhere. Bitcoin’s Velocity, which measures the frequency of transactions, remains strikingly low, painting a picture of sluggish liquidity rotation. This disparity highlights a critical imbalance: while veteran holders are offloading their coins, fresh buying interest appears tepid, lacking the vigour needed to absorb the incoming supply. Such a dynamic could pose short-term challenges, potentially tempering Bitcoin’s upward momentum in the weeks ahead.
The interplay of rising Dormancy and subdued Velocity carries broader implications for Bitcoin’s price trajectory. As long-inactive coins re-enter circulation, they introduce a quiet swell of supply that, without sufficient demand to counteract it, could curb the rally’s intensity. While this trend does not spell the end of Bitcoin’s ascent, it serves as a cautionary signal for traders and analysts alike. The market’s ability to navigate this influx of supply will likely determine whether Bitcoin sustains its lofty heights or faces a near-term correction, making the coming weeks a pivotal period for the cryptocurrency’s trajectory.
