Bitcoin Roars Back: Dormant Coins Spark Frenzy as Market Enters New Bull Cycle

Wake-up call for HODLers—Bitcoin's zombie coins just jolted the market back to life.

After months of sideways action, wallets untouched since the last cycle are suddenly on the move. On-chain analysts spotted the first tremors early last week—now exchanges are seeing volumes spike as institutional desks scramble to adjust positions.

The Lazarus liquidity effect

These resurrected coins—many last active when BTC traded below $30K—are hitting order books just as ETF inflows hit record highs. Coincidence? Traders aren't buying it. 'When long-term holders start distributing during price rallies, it's either the smart money exiting...or the dumb money finally taking profits,' quips one hedge fund manager (who definitely didn't just cover his shorts).

Wall Street's latest crypto love affair faces its first real test. Again.

Activity in Long-Inactive Bitcoins

Glassnode’s recent statement noted that 3,900 BTC, which had not been transacted for over 10 years, became active in a single day. Simultaneously, on July 4, 2025, an on-chain transfer of 80,000 BTC was documented. The re-entry of these long-dormant Bitcoins into the market is attributed to various factors, including inter-wallet transfers, custody changes, or potential selling pressure.

Historically, the sudden activation of long-dormant crypto assets has often led to significant price fluctuations in the cryptocurrency market. However, it cannot be conclusively generalized that every such movement indicates selling pressure. Crypto Traders Are Rushing to This App – Here’s Why You Should Too

Focus on Price Support Levels

According to Glassnode’s on-chain analyses, Bitcoin$118,071 witnessed a swift surge from $110,000 to $117,000 in early July. During this period, a low-density accumulation zone was observed in the price chart. The organization foresees that this accumulation area could become a bottom formation zone if the price loses its support levels.

Bitcoin was trading around $116,671 at the time of reporting, experiencing around a 2.1% decrease over the last 24 hours. The potential price fluctuations are crucial since they may prompt strategic changes for both new and seasoned investors.

Emphasis on Market Value and Liquidity

Additionally, Glassnode announced in its weekly report that Bitcoin’s realized market value exceeded $1 trillion. This level signifies the total value based on the last transaction price of each Bitcoin, illustrating the actual capital flow within the Bitcoin network. This milestone is significant as it showcases the cryptocurrency’s reliability and scale within the market.

The realized market value allows for tracking the true inflow and outflow of funds in the market, rather than purely Bitcoin’s current value. Analysts believe this measure could enhance the cryptocurrency’s appeal among institutional investors.

These evolving dynamics present both opportunities and risks for investors. The market’s instantaneous price volatilities and on-chain movements can significantly influence long-term investor behaviors. Experts underscore the necessity for investors to keep a vigilant eye on such developments. The reported data indicates growing effects of both liquidity and initial investors in the cryptocurrency markets.