Such resurgences can have bearish implications for the market. When long-dormant addresses are reactivated, it often indicates that holders are preparing to liquidate their assets, potentially flooding the market with significant amounts of Bitcoin.
This can lead to increased selling pressure, driving prices down. The market’s reaction to such events is typically cautious, as traders prepare for potential sell-offs.
Interestingly, this trend of decades-old wallets coming back to life has been notable this month, and today is not even the first such awakening.
These movements are particularly noteworthy given the current state of the crypto market. The price of Bitcoin continues to trade in the red, with the leading cryptocurrency hitting $57,300 today, a level not seen since late April.
The market downturn, coupled with the reactivation of these old addresses, has created a climate of uncertainty and caution among traders.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
