Bitcoin's Dormant Supply Awakens with Massive 1,423% Coinbase Inflow Surge

Bitcoin's price has been showing signs of consolidation after a recent pullback. The asset closed at $62,763 on August 1, marking its lowest performance in two weeks.

A significant shift in market dynamics is indicated by the activation of dormant old supply and increasing miner stress. On-chain data shows a massive surge in Bitcoin supply flowing to exchanges that had remained inactive for 2-7 years.

The flow of assets worth $315 million and $216 million, respectively, was observed in the 3-5 year band and 5-7 year band. This movement resulted in a net inflow increase of 1,423% on Coinbase exchange.

Miner stress is also rising, as indicated by the miner capitulation indicator reaching level 1. The current outlook suggests that rather than a sharp breakdown in Bitcoin price, a long consolidation process is expected until the dormant supply is fully absorbed.