Dormant Bitcoin movement hits 4-year low as OG selling eases

Dormant Bitcoin movement fell to its lowest level since the third quarter of 2022 in the second quarter, data from Galaxy Research shows.

The decline marks a sharp reversal from elevated dormant coin activity seen in 2024 and 2025, when long-term holders were actively distributing coins, Alex Thorn, head of firmwide research at Galaxy Digital, said.

Coin days destroyed, a metric that gives greater weight to older coins, showed a similar decline. Thorn attributed the earlier spikes to "OGs taking profit," a pattern that also emerged during Bitcoin's 2017 bull market.

The slowdown in distribution from long-term holders reduces a key source of selling pressure on Bitcoin, potentially supporting price stability as the supply of readily available coins contracts.

Dormant coin movement tracks Bitcoin that has remained untouched for extended periods before being spent again. Analysts monitor the metric because increased activity from long-term holders has historically coincided with periods of profit-taking and heightened selling pressure, while subdued activity suggests those investors are holding rather than distributing their coins.

Bitcoin traded at $64,410 as of 14:00 UTC, little changed over the past 24 hours, according to CoinGecko. The subdued price action aligns with the on-chain signal that distribution pressure from older coins has eased.

The pattern mirrors the 2017 cycle, when long-term holder distribution peaked near the top and then tapered off as the market entered a consolidation phase. If history repeats, the current slowdown in dormant coin movement could precede a period of accumulation by new investors, reducing available supply and creating conditions for a price recovery.

Thorn's analysis comes as Bitcoin has traded in a range between $60,000 and $70,000 for much of the second quarter, with on-chain metrics suggesting the market is in a re-accumulation phase rather than a distribution top. The Galaxy desk itself is split 50/50 on whether the bottom is in, Thorn said in a separate post, reflecting the uncertainty around the next directional move.

This article is for informational purposes only and does not constitute investment advice.