An important Bitcoin [BTC] transaction took place involving a dormant wallet transferring 10,158 BTC, equivalent to around $681 million, back into circulation.
This significant transfer led to a total on-chain volume of $37.4 billion, the highest seen in the past seven months.
This particular activity was detected by Santiment, a platform specializing in blockchain analytics, and has attracted considerable attention within the market. Historically, the revival of inactive Bitcoin wallets has been associated with upward trends in prices.
This occurrence highlights a change in behavior among long-term holders, as a substantial amount of previously idle BTC has now returned to the market.
Further data from Lookonchain linked to the transaction suggests a possible ripple effect throughout the market.
Increase in on-chain activity
The $37.4 billion on-chain transaction volume was recorded on a single day, representing the highest daily volume since March 12, 2024.
This surge was primarily driven by the movement of dormant Bitcoin back into circulation, indicating a rise in activity among large holders.
Santiment pointed out the significant rise in the “Age Consumed” metric, which monitors the movement of older BTC that had previously been inactive.
The Age Consumed data indicated a sharp increase, suggesting a considerable portion of the transaction volume originated from older, dormant Bitcoin holdings.
Typically, this kind of movement indicates a resurgence in activity among large accounts, with potential future effects on Bitcoin’s price trajectory.
Bitcoin network indicators reflect mixed signals
Despite the spike in on-chain volume, certain key metrics related to Bitcoin addresses exhibited a decrease.
Data from IntoTheBlock indicated a decline in new, active, and zero-balance addresses over the recent week.
New addresses fell by 5.56%, active addresses by 6.54%, and zero-balance addresses by 10.06%, with the total active address count standing at 747.72k as of October 7th.
This drop in address activity might suggest a short-term reduction in network engagement. Nonetheless, Bitcoin’s price has shown resilience, staying relatively robust amid recent market fluctuations.
Potential selling pressure
An analysis by CryptoCrypto on Bitcoin spot inflows and outflows depicted a trend of more BTC being moved into exchanges. By October 10th, a net inflow of $7.35 million was observed.
Positive inflows typically indicate possible selling pressure, as traders transfer Bitcoin to exchanges for potential liquidation.
This minor inflow suggests that some traders could be preparing to sell; however, it is not significant enough to suggest a substantial shift in the market.
Bitcoin’s price was recorded at $60,947 at the time of writing, showing a slight decrease from the previous week.
Despite the inflows, the price has maintained its stability, indicating that the selling pressure may not be strong enough to lead to a significant downward movement at this juncture.