Definition ∞ Dormant supply movement describes the transfer of cryptocurrency assets that have remained untouched in wallets for an extended period, often years. This activity is monitored by on-chain analysts as it can signal a change in long-term holder behavior. Such movements might indicate an intent to sell, restake, or reallocate assets.
Context ∞ News reports often reference dormant supply movement to infer shifts in market sentiment or potential selling pressure from long-term holders, sometimes referred to as “whales.” A significant movement of previously inactive coins can influence market liquidity and price volatility. Observing these transfers helps in assessing the conviction of long-term investors and anticipating market reactions.
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