Bitcoin’s Long-Dormant Supply Stirs, but Metric Doesn’t Yet Signal Selling

Bitcoin held by long-term owners is becoming active again, though the move does not necessarily amount to a sell signal.

Axel Adler Jr., a CryptoQuant contributor, wrote on X on August 14 that the 30-day moving average of Bitcoin’s Average Coin Dormancy rose to 19 days, surpassing the 365-day moving average for the first time this year.

Average Coin Dormancy measures how long transferred Bitcoin had been held since its previous transaction. When the reading rises, it suggests Bitcoin that had remained inactive for an extended period has started moving again.

Adler said the latest increase in the indicator should not be taken as an immediate sell signal. Part of the increase following the Coldcard hack may reflect large-scale transfers of Bitcoin to new wallets rather than sales, he wrote.

The current rise in dormancy should not automatically be interpreted as distribution by long-term holders, he added.