Dormant Bitcoin Activity Soars 121% in Q1 2025 Amid Economic Uncertainty
The total amount of dormant Bitcoin (BTC) activity increased by 121% from Q1 2024 to Q1 2025 because investors adjusted their perspectives despite economic turbulence. Research by CryptoQuant shows the transfer of approximately 62,000 BTC which remained idle for seven years took place during Q1 2025 while Q1 2024 experienced only 28,000 BTC transfers. During January the total BTC movement reached 24,595 while February recorded 21,820 BTC and March transferred 16,456 BTC which surpassed the 2024 peak of 19,296 BTC.
The analyst believes this sudden increase results from long-term investors who respond to economic pressures and changing price predictions as well as institutional liquidity demands. Bitcoin faced a volatile 2025 year due to rising tensions between nations and ongoing trade conflicts and economic instability. The latest newsletter from Glassnode reveals Bitcoin reached its most extreme cycle drawdown while new investors must absorb substantial unrealized losses. Long-term investors show profits from their positions but the new group of top buyers who shifted to this category now faces growing financial losses.
Bitcoin’s price dropped 2.2% daily as the cryptocurrency market corrected but its price rebounded 8.9% weekly to reach $92,164. The increased market activity does not occur solely with Bitcoin. The Ethereum (ETH) network showed related movements because Lookonchain identified a whale transferring 77,736 ETH to Bitfinex after six years of inactivity. Onchain Lens observed an eight-year inactive investor who transferred 11,104 ETH ($19.97 million) while sending 247.93 ETH to Coinbase and moving 10,856 ETH to a fresh wallet at the original purchase price of $2.51 million.
Investors who face economic uncertainty have started to strategically readjust their positions through these increased dormant asset movements. Market participants from both retail and institutional backgrounds have started to restructure their investment portfolios because of rising trade tensions and market volatility while possibly waiting for price movements or accessing liquidity. Bitcoin’s price increase gives investors some positive signals but the large unrealized losses on newer investors indicate how vulnerable the market remains. The ongoing movement of dormant assets functions as a market indicator which shows investor confidence in crypto resilience during worldwide economic difficulties.
Dominic Maley is an American journalist recognized for his sharp and insightful reporting on social and political issues. His work is known for its depth, integrity, and the ability to highlight critical societal concerns.