- This was the largest jump in BTC's dormant supply in over two years.
- Whales continued to add Bitcoin exposure to his portfolio.
Bitcoin [BTC] This week it has been in the $64,000 to $67,000 range, facing strong resistance at $68,000.
According to CoinMarketCap, at the time of writing, King Coin is trading at $641.4 million, 12% lower than its all-time high (ATH) recorded at the beginning of the month.
What do you expect next?
However, we could see significant volatility swings over the next few days. According to an analysis of Santiment data by AMBCrypto, many previously inactive BTC started moving between addresses on March 23rd.
In fact, this was the largest spike in BTC's dormant supply movement in over two years.
Source: Santiment
For much of 2023, dormant supply in key age groups has been at record highs, indicating a market strategy of caution and reservation.
However, as the price of Bitcoin surged to new highs in 2024, these long-term holders began chasing profits and were able to free up more Bitcoin for active trading. A decline in dormant supply typically precedes volatility and price spikes.
Current market structure supports price increases
It is worth noting that most of the long-term holders have made a profit when AMBCrypto analyzed using Glassnode’s net unrealized P&L metric.
As shown below, this market stage is called one of belief and has historically encouraged further price increases. The market's peak, which is generally associated with exhilaration and greed, is still a long way off.
Source: Glassnode
Whales continue to stockpile
Meanwhile, whales were taking full advantage of the subdued market and adding Bitcoin exposure to their portfolios.
The number of unique entities holding at least 1,000 coins surged to 1,616 on March 23, the highest since February 2021.
read bitcoin [BTC] Price prediction for 2024-2025
Interestingly, despite Bitcoin's sharp correction from its all-time highs, accumulation did not slow down. This suggests belief in the long-term price growth of cryptocurrencies.
Source: Glassnode
Whales also expressed optimism in the derivatives market. At the time of writing, nearly 58% of all whale positions on Binance were long Bitcoin, according to Hyblock Capital.
Source: Hyblock Capital
