The early movement in the reactivated dormant Bitcoin (BTC) wallets in 2019 indicate that prices may soon see some bearish movement, according to analysts.
According to Bloomberg’s data analysis compiled from research by a crypto analytics startup — Flipside Crypto, BTC is being transferred from accounts, many of which have not been active between the period of six and thirty months. Research shows that wallets active in the last month represent about 60 percent of total bitcoin in circulation.
Flipside maintains that the active supply of Bitcoin is on the move, leaping 40 percent since the summer of 2018, representing “a big shift” according to Eric Stone, head of data science at the company. Flipside CEO David Balter said this activity is due to long-term holders coming back on board after sitting out the volatile market since 2017.
Balter sees that this could continue, with little doubt in his mind that many long term “hodlers” won’t wish to sit on the sidelines for another two years, commenting that there is now, “more potential than usual for price swings.”
Other analysis, compiled in October 2018 when this market trend began, put together by blockchain research firm Chainalysis, reported that only a third of so-called Bitcoin whales were active traders, buying only on price declines, concluding that whales were not responsible for price volatility.
With around 1000 wallet addresses reportedly owning a staggering 85 percent of all bitcoins, the awakening of some of these dormant accounts in the near future could have a significant impact on the Bitcoin price in 2019 and ultimately the entire cryptocurrency market.