Bitcoin OG Profit-Taking Slows as Dormant Activity Hits Four-Year Low
Long-term Bitcoin holders have slowed their distribution of BTC after heavy profit-taking earlier this year. According to Alex Thorn, Galaxy's head of firmwide research, dormant Bitcoin activity has fallen to a four-year low in the second quarter. This decline is indicated by a decrease in coin days destroyed, a metric that gives greater weight to older coins.
The analysis suggests that 'OGs taking profit' drove earlier spikes in distribution, similar to the pattern seen during Bitcoin's 2017 bull market. Thorn noted that the current subdued activity may indicate long-term holders are holding rather than distributing their coins.
Dormant coin movement tracks Bitcoin that has remained untouched for extended periods before being spent again. Analysts monitor this metric because increased activity from long-term holders has historically coincided with periods of profit-taking and heightened selling pressure.