Dormant Bitcoin Wallets Move $3.93B Amid $620M Crypto Liquidations
Bitcoin Reaches New Highs, Faces Profit-Taking and Volatility
- Bitcoin hit a new all-time high above $126,192 on October 6, then retracted 4% to around $120,000 due to profit-taking.
- On-chain data revealed significant movement from dormant wallets, with 32,322 BTC (~$3.9 billion) transferred, marking the largest movement this year.
- This activity introduces short-term bearish pressure by increasing circulating supply and potentially delaying new purchases.
Market Reactions and Potential Rebound
- The selling led to $620 million in liquidations across crypto markets, with $454.87 million in leveraged long positions closed.
- Despite the sell-off, derivatives data indicates that bulls are beginning to counteract the downward momentum.
- Total liquidation saw a reduction in loss incidence from 74% to 55%, suggesting bulls are regaining balance as Bitcoin stabilizes around $120,000.
- High demand from crypto ETFs and corporate treasuries could support absorption of the dormant BTC supply during corrections.
- Market sentiment is influenced by Blackrock's ETF inflows and anticipated US Fed rate cuts, potentially supporting a rebound towards $130,000.
