Long-Dormant Bitcoin Wallets Awaken: Spot Selling Pressure Mounts

Long-term investors in the Bitcoin market moving their old assets to spot exchanges is creating significant selling pressure on the price, strengthening bearish signals.

Recent activity in the cryptocurrency market has revealed a critical data point of close interest to Bitcoin (BTC) investors. On-chain data shows that long-dormant wallets are becoming active and these assets are being transferred directly to spot exchanges. This situation indicates the beginning of what is called a “distribution phase” in the market, a process that typically triggers price declines.

According to analyses, sudden spikes in Spot Exchange Inflow CDD (Coin Days Destroyed) data prove that high-conviction investors are taking action for profit-taking or risk reduction. CDD, a technical term, measures how long a coin has remained inactive and how much of a “day load” it carries when transferred. An increase in this data means that “old” Bitcoins that have been waiting for years are being released into the market.

Spot Selling Pressure on Bitcoin Price Is Increasing

When examining chart data, it is evident that interest in spot exchanges is far more dominant compared to inflows into derivative exchanges. The downward trend of CDD data in derivative markets proves that large investors prefer selling directly in the spot market rather than through leveraged transactions. This structural divergence reveals that market risk is being shaped entirely through spot liquidation.

Particularly, the miner position index and activity in exchange inflows reflect sellers’ appetite during this period when the Bitcoin price is fluctuating around the $60,000 level. This strategic move by long-term investors suppresses short-term market noise and creates a clear downward pressure on the asset. This situation clearly documents that a distribution phase has been entered, where investors should remain cautious.