Definition ∞ Multi-year dormancy describes cryptocurrency that has remained unspent in a specific wallet address for several years. This term encompasses various long-term holding periods, such as three, five, or ten years, indicating a strong conviction among these holders. The sustained inactivity of these coins suggests a reduced circulating supply and can be a bullish signal for an asset’s long-term value. Any movement of these dormant coins can have a notable impact on market supply dynamics.
Context ∞ Crypto news often reports on significant instances of multi-year dormant coins becoming active, especially if large quantities are moved to exchanges. Analysts track these events to assess potential selling pressure or shifts in market sentiment among long-term investors. The activation of these old coins can influence short-term price movements and inform discussions about market cycles and the behavior of different investor cohorts.
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