Short-Term Holders Gain as Dormant Bitcoin Coins Reactivate
Bitcoin supply dynamics are undergoing a mid-cycle reset as short-term holders now control 2.4 million BTC, a 7.96% gain, while long-term holders’ supply dips to 14.54 million BTC. CryptoQuant data highlights a sixfold year-on-year spike in reactivated supply, with average monthly movements at 30.7 K BTC and transaction sizes soaring from 162 to 1,011 BTC. The 30-day SMA of new addresses crossing above the 365-day SMA underscores renewed on-chain activity. These Bitcoin supply dynamics reflect rising market confidence, evidenced by the rally past $120 K and a reactivation of dormant coins by high-conviction players. Traders should monitor these on-chain indicators for potential bullish momentum.
Bullish
These Bitcoin supply dynamics suggest a bullish outlook. The surge in short-term holders coincides with a significant awakening of dormant coins, indicating renewed market confidence. Historically, similar mid-cycle supply rotations—such as the reactivation of long-dormant BTC in late 2016—preceded major bull runs. The sixfold year-on-year increase in reactivated supply, coupled with a crossover of the 30-day new-address SMA above the 365-day SMA, mirrors on-chain expansions observed ahead of the 2020–2021 rally. Larger average transaction sizes point to high-conviction entrants reshaping the supply map, often a precursor to upward price pressure. In the short term, this heightened on-chain activity may fuel volatility as traders position for further gains. Over the long term, the structural reset in supply dynamics could sustain bullish momentum, reinforcing support levels and potentially driving Bitcoin toward new highs.