Bitcoin Faces Selling Pressure as Dormant BTC Moves Amid Market Uncertainty

A large volume of dormant Bitcoin (BTC) has recently been activated, sparking speculation about potential market impact. According to CryptoQuant analyst Martuun, 8,007 BTC, aged between three to five years, have been moved on-chain. Historically, such movements suggest holders might be preparing to sell, consolidate, or enhance security measures.

Despite this activity, Bitcoin remains in the red, struggling to gain upward momentum. After three consecutive days of losses, BTC attempted a brief rebound but failed to sustain bullish momentum. At the time of writing, Bitcoin was down 3.3% in the last 24 hours, trading at $86,076. The recent 12.6% drop over three days marks its steepest decline since the FTX collapse in November 2022, according to TradingView.

Market sentiment remains weak as broader macroeconomic factors weigh on Bitcoin’s price. On Feb. 21, 2025, Bybit suffered a historic hack, losing 403,996 ETH (about $1.13 billion) due to a smart contract exploit. This triggered widespread panic, leading to massive withdrawals totaling $4.3 billion in Bitcoin and stablecoins. The breach intensified selling pressure, further dragging Bitcoin’s monthly performance down to -13.6%.

Bitcoin briefly dipped to $82,111 before recovering to $86,000. The sell-off pushed BTC back into the realized supply “air gap” between $70,000 and $88,000, a zone with low-cost-basis density. This weakness, initially triggered by long-term holders selling, was exacerbated by the Bybit hack.

If demand fails to recover, Bitcoin faces further downside risks. The coming weeks will be crucial in determining whether BTC stabilizes or continues its downward trajectory.