Dormant Bitcoin Activity Hits Four-Year Low Amid Cooling Market
The recent trend of dormant Bitcoin activity has hit a four-year low, according to Galaxy's Thorn. The second quarter saw the lowest level of dormant coin movement since the third quarter of 2022.
This decline is significant because it often precedes profit-taking by long-term holders, who have historically sold their coins during rallies. Alex Thorn, head of firmwide research at Galaxy Digital, noted that OGs (original gangsters) are taking profits, a pattern reminiscent of Bitcoin's 2017 bull run.
The reactivation of dormant coins has slowed down after a two-year sell-off. The metric 'Coin Days Destroyed' also fell in Q2, indicating reduced spending on long-held wallets. Thorn described the two-year period as a 'great distribution', with 2024 and 2025 seeing more long-dormant Bitcoin movement than any other year, including the 2017 rally.
Galaxy's charts show a repeating cycle of old coins waking up during rallies, with holders of coins aged 1-10 years moving large amounts to sell. This year, however, that flow has dried up. Thorn pushed back against one theory circulating online, stating that whales are not selling due to quantum computing risk, which he believes discourages outside buyers more than it encourages existing holders to sell.
BTC is currently trading near $65,000 after a steep drop from its all-time high of over $126,000 in October 2025. Thorn's statements provide insight into the market dynamics and potential selling pressures on Bitcoin.