Bitcoin Dormant Wallet Activity Surges 121% Amid Price Rally to $100K

Bitcoin’s long-dormant wallets have seen a remarkable surge in activity, with transactions involving these addresses rising by 121% year-over-year in Q1 2025, according to new data from CryptoQuant. This trend may signal a shift in sentiment among long-term holders, potentially triggered by renewed confidence in the market.

CryptoQuant's data highlights a significant spike in dormant wallet activity from November 2024 through January 2025, with January marking the peak. This increase coincided with Bitcoin’s powerful rally past the $100,000 mark, a milestone that reignited attention from both institutional and retail investors.

The activation of wallets that have remained untouched for years typically suggests that holders believe current market conditions are favorable—either for profit-taking or portfolio restructuring. Analysts often interpret such moves as a potential precursor to volatility, especially when they follow major price surges.

As of today, Bitcoin briefly spiked to an intraday high of $94,320, recovering from recent market jitters driven by global trade tensions. Despite the correction, BTC remains up 0.56% since the start of the year, maintaining a bullish trajectory in the face of macroeconomic uncertainties.

This wave of dormant wallet activity, coupled with the latest price movements, reinforces the narrative that long-term holders are reengaging with the market, potentially positioning for further upside or preparing for increased liquidity needs.

As the crypto market continues to evolve, monitoring wallet behavior—especially from early adopters—provides valuable insights into broader investor sentiment and market cycles. With Bitcoin firmly back in the spotlight, the movements of these long-silent wallets could offer key clues for traders and analysts alike.