Bitcoin Dormant Activity Hits Lowest Point Since 2022, Signs of Major Shift

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Activity among long-dormant Bitcoin holders plunged sharply in the second quarter of 2026, reaching its lowest since late 2022, according to fresh data from Galaxy Digital. Alex Thorn, head of research at the firm, highlighted this surprising decline on social media platform X, noting that it signals a major change in market dynamics.

Are Seasoned Holders Already Done Selling?

The recent downturn in activity among older Bitcoin wallets indicates that many long-term holders, often dubbed the market’s “original gangsters” or OGs, have completed their profit-taking. Thorn pointed out that this trend is reminiscent of the 2017 rally when seasoned crypto investors also largely ceased market engagement after reaping substantial gains. He confirmed that many veteran holders appear to have exited their positions amid market highs in 2024 and 2025, effectively lessening selling pressure on Bitcoin.

How Does Dormant Activity Shift in Bull Cycles?

Historically, old Bitcoin reawakens during bull markets, with significant movements last seen between 2024 and 2025 when crypto rallied similarly to 2017. Massive volumes of these dormant coins, sometimes untouched for up to ten years, moved to exchanges for sale, peaking at the end of 2025 as about 900,000 BTC aged 1-2 years were traded in a single month. However, this trend nosedived in 2026.

Alex Thorn, heading Galaxy Digital’s research, likens this to past cycles where long-term holders eased off after substantial activity. His projections indicate that 2026 will continue to see muted levels of movement compared to recent years.

• Dormant Bitcoin activity has plummeted to notable lows, unseen since 2022.
• Analysts draw parallels to 2017’s market conditions, indicating seasoned traders have moved on.
• 2026 movement expected to drop to under 50% of prior years’ levels.

The broader market’s response saw Bitcoin’s price react to these behavioral shifts. After its meteoric rise past $126,000 in late 2025, it slid nearly 48% by mid-2026. Thorn dispelled rumors that fears over quantum computing had led to increased whale sell-offs. Instead, he argued it was part of regular profit-taking cycles, downplaying the impact of technological risks on investor sentiment.

During this downturn, significant Bitcoin transfers from known holders to exchanges were observed, influencing the market and contributing to a significant price drop by July 2026. These moves indicate continuing market evolution as digital currencies mature and align with traditional market rhythms.