Dormant Bitcoin Movement Increased by 121% in Q1 2025, Suggesting Shifts in Investor Strategy Amid Economic Uncertainty

• Dormant Bitcoin movement surged 121% in Q1 2025, indicating a shift among long-term holders responding to market trends.

• March 2025 saw 16,456 BTC moved, with January and February recording 24,595 BTC and 21,820 BTC, respectively.

• Increased dormant asset activity, including Ethereum, suggests investors are adjusting strategies due to economic uncertainty.

Long-term Bitcoin holders are moving dormant assets in response to economic shifts, with a 121% increase in movement this quarter, reflecting changing investor strategies.

Dormant Bitcoin on the Move: What’s Driving the Trend?

In a recent report, the on-chain analyst noted that during Q1 2025, investors moved approximately 28,000 dormant Bitcoins. March proved especially significant, with approximately 19,296 BTC moved compared to January’s 3,034 BTC and February’s 5,678 BTC.

“In the first three months of 2025, more than twice the amount of long-dormant Bitcoin has been moved compared to the same period in 2024,” the analyst stated.

Comparatively, the first quarter of 2025 saw an unprecedented movement of over 62,000 BTC dormant for over seven years. Specifically, investors transferred 24,595 BTC in January, 21,820 BTC in February, and 16,456 BTC in March.

This trend suggests a significant change in sentiment among long-term Bitcoin holders, possibly influenced by macroeconomic factors, shifting price expectations, or institutional liquidity demands.

Indeed, 2025 has been tumultuous for Bitcoin, with geopolitical tensions, trade disputes, and economic instability significantly affecting market conditions.

Glassnode further reported that Bitcoin is experiencing its deepest drawdown of the current cycle. In their weekly newsletter, they highlighted the intense pressure faced by investors, many of whom are encountering their most significant unrealized losses to date.

“Current unrealized losses are predominantly found among newer investors, while long-term holders remain generally profitable. However, a notable trend is emerging, where recent buyers are transitioning into long-term holders, potentially increasing unrealized losses within that group,” the newsletter detailed.

Despite this drawdown, Glassnode reassured that BTC’s decline aligns with the expected range of corrections typical in bull markets. Notably, Bitcoin is also riding a recovery wave, appreciating by 8.9% over the past week, despite a daily loss rate of 2.2%. As of now, BTC trades at $92,164, reflecting broader market corrections.

However, the uptick in dormant asset movement is not restricted solely to Bitcoin. A similar trend is observable in the Ethereum (ETH) ecosystem. Lookonchain noted that a major investor deposited their entire stash of 77,736 ETH into Bitfinex after a stunning six-year dormancy.

Additionally, in early April, Onchain Lens reported an eight-year dormant whale transferring 11,104 ETH, valued around $19.97 million.

“Of this total, 247.93 ETH was sent to Coinbase and 10,856 ETH to a new wallet. This whale initially withdrew ETH worth $2.51 million from Kraken and Gemini eight years ago,” Onchain Lens elaborated.

Such asset movements further underscore the shifting strategies of investors amidst ongoing economic uncertainties.

Conclusion

This recent surge in dormant Bitcoin movement, coupled with similar activity in Ethereum, signals a noteworthy development among long-term investors reacting to external economic conditions. As market dynamics continue to evolve, keeping a watchful eye on dormant asset trends may provide essential insights into future market behaviors. Overall, these movements reflect strategic repositioning by investors as they navigate the complexities of today’s economic landscape.