The Bitcoin network has recently witnessed a substantial increase in activity while the older Bitcoin ($BTC) are moving overall. As per the prominent crypto analytics company CryptoQuant, this increased activity has ignited several apprehensions concerning likely selling pressure as it could influence the upward trend of the crypto asset. The analytics provider took to its official X account to discuss this situation.
Old Bitcoins are on the move
“Overall, we are seeing a significant increase in the movement of coins from various age bands during this latest leg of the rise, with continuous transfers happening on the #Bitcoin network.” – By @XBTManager
Full post 👇https://t.co/LR0bvdvAOY pic.twitter.com/sUe6yqp4Xj
— CryptoQuant.com (@cryptoquant_com) September 24, 2024
CryptoQuant Analyst Highlights the Current Spike in Bitcoin’s Network Activity, Raising Concerns
XBTManager, a well-known crypto analyst on CryptoQuant, published a report analyzing the surging activity spike of the Bitcoin network. The analyst noted that a considerable number of $BTC tokens from diverse age groups have moved across the network. This reportedly raises questions about the likely outcomes of the respective movements. There are chances for a market sell-off to occur because of the current market activity.
The analyst pointed out that the activity commenced back on the 18th of September. Since that time, 4,924 $BTC has seen a shift. The parties owning the respective tokens had been holding them for nearly two to three years. In addition to this, up to 16,707 $BTC tokens held for 7 days to 1 month also got transacted.
A day after that, on the 19th of this month, even larger amounts saw movements. In this respect, approximately 17,160 Bitcoins, which were in the holdings for seven days to one month saw a transfer. Moreover, 1,617 $BTC tokens with a 3 to 6-month holding period also got transferred. The respective trend continued in the upcoming days. Then, on the 20th of September, 17,019 $BTC with a holding period of 7 days to 1 month moved.
The Surging Activity Helps Gauge the Extent of the Likely Sell-offs
Furthermore, 1,405 $BTC with a holding period of 1 to 3 months also shifted, adding to the current market activity. This movement has reportedly raised concerns about a possible increase in selling pressure, as it suggests that short-term holders may be preparing to liquidate their positions. According to a CryptoQuant analyst, it’s important to monitor whether these transacted $BTC tokens are transferred to exchanges, as this will help gauge the potential depth of a sell-off and its impact on the broader market.