Yahya 
According to on-chain Bitcoin expert XBTManager, a recent $1.7 billion worth of “dormant” Bitcoin transfer raises questions over possible increasing selling pressure in the cryptocurrency market.
XBTManager said in an Aug. 13 post on CryptoQuant that between Aug. 11 and Aug. 12 29,206 Bitcoin—which had been idle for up to three years—were moved on-chain. Especially, on Aug. 11, 18,536 BTC that had been inactive for two to three years were transferred, clearly exerting influence on Bitcoin’s price. A few hours later, 5,684 BTC that had been idle for three to six months also were moved. Along with 2,394 BTC dormant for 3-5 years, 4,986 BTC inactive for 3-12 months were also transferred on-chain the next day.
“Moving these long-dormant Bitcoin usually results in more market sales pressure. This may lead to declining prices in times of limited liquidity, which can possibly persist,” XBTManager said.
Market Sentiment Remains Mixed Amid Bitcoin Movements
Though the migration of these inactive monies raises questions, several experts still see bright mid-term future for Bitcoin. Following cooler-than-expected US Producer Price Index (PPI), Bitcoin has been “boosted by the continuous improvement in risk sentiment and sell-off in US yields” IG Markets analyst Tony Sycamore pointed out. Sycamore said that Bitcoin, having just shown a false break below $50,000, might extend advances towards the $70,000 barrier level in the next sessions.
In their Aug. 13 market analysis, Glassnode analysts called the state of the industry today one of “discernible uncertainty.” Still, they also saw a rising inclination among Bitcoin owners for HODLing. The experts noted that the market went into a protracted “supply distribution” after Bitcoin’s March all-time high. This tendency seems to be reversing lately, especially in bigger wallets—often linked with exchange-traded funds (ETFs). These big wallets appear to be returning into an accumulating period.
Overall, the Glassnode report concluded that the current on-chain conditions reflect an “undertone of high conviction” among Bitcoin holders, suggesting that despite short-term volatility, many investors remain confident in Bitcoin’s long-term value.
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