Based on data from an on-chain analyst, during the first quarter of 2025, there was a significant increase of 121% in the movement of inactive Bitcoins (BTC) compared to the same period in 2024.
This change suggests that investors who hold onto their Bitcoins for the long term might be responding to wider economic trends or preparing for potential shifts in the market.
The analyst's report on CryptoQuant highlighted that around 28,000 idle Bitcoins were moved in Q1 2024, with a major spike occurring in March when approximately 19,296 BTC were transferred, in contrast to lower amounts moved in January and February.
In the first three months of 2025, a notable 62,000 BTC, which had been dormant for over seven years, were transferred, with 24,595 BTC moved in January, 21,820 BTC in February, and 16,456 BTC in March.
The surge in activity indicates a change in sentiment among long-term Bitcoin holders, possibly influenced by larger economic circumstances, changing price expectations, or institutional liquidity requirements.
The year 2025 has been turbulent for Bitcoin due to geopolitical changes, increasing trade tensions, and economic uncertainties which have had a significant impact on the market.
Glassnode recently noted that Bitcoin has seen its most significant decline in this cycle, leading to high pressure on investors, especially newer ones who are facing substantial unrealized losses.
While Bitcoin's value has rebounded by 8.9% over the past week, daily losses have been at 2.2%, with Bitcoin trading at $92,164 at the time of writing. However, this drop is within the range seen in previous market cycles.
Additionally, not only Bitcoin but Ethereum (ETH) has also seen increased movement of dormant assets. For instance, in early February, a whale deposited its entire 77,736 ETH holdings into Bitfinex after remaining inactive for six years.
In a separate instance in early April, an eight-year dormant whale moved 11,104 ETH equivalent to $19.97 million, with part of it being transferred to new wallets from Kraken and Gemini after an initial withdrawal eight years earlier.
These asset movements reflect investors strategically adjusting their holdings amid economic uncertainties.