Dormant BTC reactivation to fall sharply this year, says Galaxy Digital

The reactivation of dormant Bitcoin supply, often seen as a source of selling pressure, is expected to decrease sharply this year, according to Alex Thorn, head of research at Galaxy Digital. In a post on X, Thorn noted that a significant amount of dormant BTC was already reactivated over the past two years, a volume second only to 2017. He added that the "Great Distribution" phase of this cycle, marked by the movement of older coins, is now largely complete. Thorn estimates that the volume of reactivated dormant BTC this year will be less than half of last year's total.