Definition ∞ Dormant wallet movement refers to the transfer of digital assets from cryptocurrency wallets that have shown no activity for an extended period. Such movements often signal a significant event, such as a long-term holder selling their assets, a whale repositioning funds, or a lost wallet being recovered. Analyzing these movements can provide insights into market sentiment or supply dynamics.
Context ∞ The discussion around dormant wallet movement in crypto news frequently centers on its potential impact on market prices, especially when large sums are involved. A key debate exists regarding whether these movements signify impending selling pressure or merely internal transfers by large holders. Market observers closely monitor these transactions for clues about shifts in long-term investor conviction or the activation of previously inactive supply.
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