• The number of active Bitcoin wallets has been growing since October 2018.
  • A resurgence of whales may become a source of great market volatility.

Experts of a research and analytics provider Flipside Crypto noticed that an increased number of dormant bitcoin wallets have been showing signs of life. 

Holders, that hadn't touched their coins for a long period from six months up to two and a half years, have been recovering from a hibernation state since October. The trend is gaining traction as now over 60% of all coins mined so far is stored in active wallets - those that have been active within the recent 30 days.

“It’s definitely a big shift. There’s more potential than usual for price swings," Eric Stone, head of data science at Flipside, explained in an interview with Bloomberg.

A similar surge of wallets activity was registered ahead of strong growth of cryptocurrency market volatility in 2015 and 2017. In 2017 it pushed the digital coin to its all-time high close to $20 000.

It is worth noting, that the industry is plagued by a so-called concentration of ownership. About 1,000 of wallets control 85% of Bitcoins in circulation. Those holders are known as whales and many of them have been dormant during the recent years that saw Bitcoin surge to eye-watering $20 00o and collapse back to $3,100.

“We’ve definitely seen that many long-time holders of Bitcoin are becoming active," David Balter, chief executive officer of Flipside, explained.

“The fact that those wallets have been recently active leads us to believe they could soon be active again. Put another way: We have no reason to expect them to remain stagnant for other 2-plus years,” he added.

This development may result in the strong growth of Bitcoin volatility, while the direction of the price movements is still unclear. We shall wait and see how things will play out.

BTC/USD is hovering around $3,500 handle. The coin touched $4,110 during the previous week and lost 15% of its value since that time. A failure to get back above $3,800 handle will bode ill for the short-term perspectives of the coin. Another wave of sell-off may take it to the lowest level of 2018 at $3,127.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Cryptocurrency market update: Bitcoin and major altcoins lethargic in tight ranges

The cryptocurrency market stays in the red zone after an unsuccessful recovery attempt on Saturday, July 20 followed by Sunday's sell-off. Bitcoin and all major altcoins are nursing losses with the notable exception of Cosmos, Tezos and Ethereum Classic.

More Cryptocurrencies News

Litecoin price analysis: LTC/USD stalled at $100.00

Litecoin has been sidelined for the recent four days, capped by SMA100, currently at $102.76. The fourth-largest digital asset with the current market capitalization of $6.2 billion has gained nearly 10% in recent seven days to become of of the best-performing coins out of top-10. 

More Litecoin News

Ethereum price analysis: ETH/USD bulls gather breath before another assault at $230

Ethereum, the second-largest cryptocurrency with the current market capitalization of $24.2 billion, settled above $225.00; however, the further recovery is limited. ETH/USD is moving in lockstep with Bitcoin (BTC) and the rest of the cryptocurrency market ...

More Ethereum News

EOS price analysis: EOS/USD bulls strengthen their grip

EOS is rising in value during the weekend European session. The upward correction is welcome following the recent dip to $3.30. The last couple of days have seen the buyers fight tooth and nail to come out of the bear range.

More EOS News

Bitcoin Weekly Forecast: bulls lick wounds after major sell-off

The cryptocurrency market has lived through a dreadful week as Bitcoin(BTC), and all major altcoins crashed below several important support levels. 

Read the weekly forecast

BTC

ETH

XRP