The past few months have been relatively stable ones for Bitcoin and the rest of the cryptocurrency market. Enthusiasts and experts alike have theorized what has the market in a calm and flat period, and many wonder if dormant wallets are a contributing factor.
According to data from bitinfocharts.com around 10% of Bitcoin wallets have remained dormant for the last year. They define a dormant wallet as one that has not had any activity, either sending or receiving, and the site’s tools allow users to choose a timeframe. For the last year, there has been an uptick in wallets remaining dormant.
There are now 15.8 million dormant Bitcoin wallets, a number that is up nearly 2 times in the last year. Among these non-active addresses is the 7th biggest Bitcoin wallet. This particular wallet has been dormant since 2011 and holds 0.46% of all bitcoins. The top 5 dormant wallets all hold above 66,000 BTC with the top dog holding 79,957 BTC.
If huge holders like these have no inclination of selling their stacks, they will serve to provide a safety net and strong support for stability in the crypto markets going forward.
Marketwatch.com spoke with Anthony Pompliano, founder of Morgan Creek Digital, a cryptocurrency assets management firm, who spoke about the recent stability the market has witnessed.
Pompliano thinks the public is starting to believe the idea that Bitcoin is a good way to store value. “Holding bitcoin in the store of value thesis has become a popular narrative recently,” Pompliano said.
Pompliano also says the hype surrounding Bitcoin has died down and that could be causing people to step away from their digital assets and in their minds on something else.
“The less media hype, the less people are constantly thinking about their holdings. Less thinking about their portfolio leads to less activity. This is the psychology argument,” the digital assets expert said.
Some mystery may surround the identities of Bitcoin whales, but their activities are visible for all to see. When these dormant addresses come to life, surely the crypto world will be buzzing. But over these last few months, Bitcoin has remained in its most stable period since 2016.
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