Dormant Bitcoin activity declined sharply in the second quarter of 2026, falling to its lowest level since the third quarter of 2022. Alex Thorn, head of firmwide research at Galaxy Digital,
Dormant Bitcoin activity declined sharply in the second quarter of 2026, falling to its lowest level since the third quarter of 2022. Alex Thorn, head of firmwide research at Galaxy Digital, shared the updated figures in a post on X, pointing to a notable slowdown in movement among long-held wallets.
Activity from dormant coins—Bitcoin that has sat untouched for years before being moved again—is closely tracked by industry analysts. Historically, spikes in such movements have coincided with profit taking among long-term holders. The most recent drop in dormant coin activity suggests that many of these long-standing investors, often referred to as “OGs,” have already realized their profits during the latest bull cycle.
Thorn commented that the pattern mirrors trends seen during Bitcoin’s 2017 rally, with seasoned holders largely completing their distribution. He noted that most veteran holders who were seeking to sell into the market strength of 2024 and 2025 have likely finished doing so, resulting in reduced local selling pressure. Supporting this shift, Coin Days Destroyed—a metric that tracks the amount of Bitcoin moved weighted by holding duration—also declined in the second quarter.
A significant drop in dormant coin movement in Q2 points to reduced selling from long-term holders, with the volume reaching the lowest levels observed since 2022.
Thorn described the previous two years as “a great distribution,” comparing the recent on-chain activity to what occurred during the 2017 bull run. During 2024 and 2025, as much long-dormant Bitcoin moved on-chain as during the entire 2017 rally, with no comparable activity in the periods in-between. Looking ahead, he projected that the pace for 2026 would be less than half of the levels seen the prior year.
Galaxy Digital’s data, which covers trends from 2016 onward, highlights a clear cycle of old coins “waking up” during major rallies in 2017, 2021, and again through 2024 and 2025. During these periods, holders of coins aged between one and ten years moved substantial amounts, most often to exchanges for selling. Notably, distribution peaked at the close of 2025, when coins aged one to two years contributed roughly 900,000 BTC worth of transfers in a single month. In 2026, this movement dropped off.
PeriodDormant Coin VolumeMarket Activity2017 RallyHighMajor distribution by long-term holders2024-2025HighComparable to 2017, peak at end of 20252026 Q2Lowest since Q3 2022Substantial decline in dormant coin movementAlex Thorn leads Galaxy Digital’s research efforts. Galaxy Digital is a financial services and investment firm specializing in cryptocurrency sectors, offering market insights for professional and institutional clients.
Mini dictionary: Coin Days Destroyed, a metric that multiplies the amount of Bitcoin by the number of days since it was last moved. Spikes signal coins held for long durations are being transacted, often coinciding with profit taking or significant market events.
Bitcoin’s price trends closely mirror these changes in holder behavior. After reaching an all-time high above $126,000 in October 2025, Bitcoin dropped by 48% to $65,265 by mid-July 2026. The current price stands near $64,808.
Thorn addressed speculation that large holders, or “whales,” were selling due to concerns about quantum computing risks. He disputed this claim, asserting that no institutional clients at Galaxy Digital cited quantum security as a motivation for liquidating positions. Instead, he observed that such fears may discourage new buyers rather than prompt existing investors to sell.
Thorn emphasized that Galaxy’s institutional investors have not viewed quantum computing as a significant enough risk to drive recent selling, attributing the outflows to normal profit-taking cycles following extended rallies.
Throughout the market’s decline, prominent wallets—including assets held by venture capitalist Tim Draper and major mining firms—were observed moving substantial Bitcoin reserves to exchanges. On July 3, reports indicated this activity was partly responsible for Bitcoin trading at its lowest level in 21 months, around $57,950.
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