• 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

Bitcoin price prediction: BTC/USD recovers following a late bullish rally, faces resistance at $10,275

After BTC/USD went below $10,000, the bulls rallied together to bring the price up to $10,273 this Thursday. The hourly breakdown of Thursday shows us that the price found support at $9,800 and jumped up to $9,880. 

More Bitcoin News

Ripple price update: XRP/USD pivot at the 50% Fibo

Ripple was lucky enough to rise above the key resistance at $0.32. However, the buyers failed to sustains gains above the level resulting in dive under $0.30 on Thursday. The 38.2% Fib retracement level from the last swing high at ...

More Ripple News

Ethereum price analysis: Bears take control to bring ETH/USD back inside the Bollinger Band

Following eight straight bullish days, the bears have finally taken control of the market. ETH/USD has gone down from $221.35 to $217.75 so far today. Let’s look at the hourly breakdown of Thursday and Friday. 

More Ethereum News

BCH/USD technical analysis: Bitcoin Cash finds support ahead of 300 again

Bitcoin Cash is still 0.56% lower this evening but it is not one of the worst-performing cryptocurrencies.  After selling off earlier in the session bulls came in to support the price before it managed to test 300.00 yet again.

More Bitcoin Cash News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Rangebound trading and September blues come upon the crypto market

Bitcoin finishes the week with marginal losses. The first digital currency recovered from the recent low of $9,886 but stayed in the red zone as of the end of the week.

Read the weekly forecast

BTC

ETH

XRP