Dormant bitcoin addresses are wallets that have not seen any activity (transactions) for an extended period of time, usually several years.
Is it worth paying attention to the transfer of cryptocurrency from them, and why do they “wake up”?
Transferring cryptocurrency from such addresses attracts the attention of investors for several reasons:
- Activation of large dormant wallets can affect the price of bitcoin, especially if significant amounts are involved. Transfers to an exchange is a harbinger of cryptocurrency selling.
- Movement of funds from old addresses may indicate that the old private keys are still available and have not been lost. It is possible that in this way they can deliberately create pressure on the market (manipulation).
- Activation of long-inactive addresses could point to a shift in the sentiment of long-term holders.
Dormant addresses can “wake up” for various reasons:
- The owner decided to sell or move his/her bitcoins. Perhaps a decision was made to dilute a portfolio with another cryptocurrency.
- Lost access keys were found.
- Completion of long-term storage strategy.
- Legal processes related to inheritance or bankruptcy.
Is it worth paying attention to such translations?
Yes, especially if it concerns large amounts or historically significant addresses. However, one should not jump to conclusions, since the reasons for activation may be different and not always obvious.