Long-dormant Bitcoin whales resuming activity could rock price action, analysts say

Long-dormant Bitcoin whales resuming activity could rock price action, analysts say

The number of active Bitcoin (BTC) wallets, many of which have long been dormant, has seen an uptick that could herald some major market movements, Bloomberg reports Jan. 11.

Bloomberg bases its report on data and analysis from crypto analytics startup Flipside Crypto, which sealed the backing of major crypto exchange Coinbase and veteran crypto venture capital firm Digital Currency Group (DCG) back in November.

According to Flipside, as of Oct. 2018, a high number of long-inactive Bitcoin holders — defined as those that haven’t transferred their Bitcoin for between six and thirty months — have begun to transfer their coins, resulting in wallets active over the past month now holding around 60 percent of the coin’s circulating supply.

Overall, the supply of active Bitcoins has reportedly surged 40 percent since summer 2018. Eric Stone, head of data science at Flipside, commented: “It’s definitely a big shift. There’s more potential than usual for price swings.”

As Bloomberg notes, similar wallet stirrings preceded Bitcoin’s major historical price volatility in both 2015 and 2017 — in the latter year, the coin surged to all-time price highs of $20,000.

 

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Source: Long-Dormant Bitcoin Whales Resuming Activity Could Rock Price Action, Analysts Say

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