~20K Dormant Bitcoin Becomes Active, Another Bottom Incoming?

Paigambar Mohan Raj
Source: IG

According to crypto analyst and CryptoQuant verified author “Maartunn,” an unidentified whale transferred around 15,480 BTC on-chain. The Bitcoins were dormant for about 3 or 4 years.

The analyst also reported the movement of 4000 BTC, which were inactive for around two or three years.

Although it is uncertain what these whales are trying to achieve and whether these coins have reached exchanges, the movement of old Bitcoin is often a bearish indicator.

Furthermore, the BTC movements followed Maartunn’s warning of another market crash as altcoin domination breached 50%. The Ethereum Merge, the conclusion of the 2021 bull run, and the 2018 ICO bubble all followed the same pattern.

Maartunn notes the potential for additional downside, even if the price dump may not be as damaging as before. Altcoins taking the lead is not a sign of a stable environment. However, the development is not surprising, given the current economic climate.

Bitcoin funding rates spike

Maartunn also expressed concern about the possibility of more capitulation due to the rise in Bitcoin funding rates. He acknowledges that the increase in funding rates is not a bearish sign. However, he notes that these traders would be obliged to exit their positions if the price moves in the other direction.

Moreover, towards the end of 2022, Bitcoin volatility hit an all-time low, leading to very consolidated price movements.

Nonetheless, Bitcoin (BTC) has held steady amid uncertainty looming over the crypto market. DCG (Digital Currency Group) is facing insolvency fears, Silvergate recently announced 40% layoffs, and the Genesis saga has continued into 2023.

At press time, Bitcoin (BTC) was trading at $16,795.93, down by 0.1% in the last 24 hours. Additionally, the original crypto is down by 75.7% from its all-time high of $69,044.77, attained in November of 2021.