Five Year Dormancy

Definition ∞ Five year dormancy describes cryptocurrency that has remained unspent in its wallet address for a continuous period of five years or longer. This metric is a specific subset of coin age analysis, indicating extremely long-term holding behavior. Coins exhibiting five year dormancy are often considered part of the illiquid supply, held by early adopters or those with strong conviction in the asset’s future value. Their movement can signal significant shifts in market sentiment or supply availability.
Context ∞ Crypto news and on-chain analysis frequently highlight instances of coins breaking five year dormancy as a notable market event. Reports track these movements to assess potential impacts on market supply and price, particularly for assets like Bitcoin. The spending of such old coins can generate discussions about profit-taking by long-term holders or the activation of previously lost or forgotten stashes, influencing broader market perceptions.