A seismic shift of $1.7 billion worth of long-dormant Bitcoin has emerged as a potential catalyst for increased selling pressure within the cryptocurrency market, according to insights from an on-chain Bitcoin analyst.

In an August 13th contribution to CryptoQuant, the analyst known as XBTManager revealed that a staggering 29,206 BTC, lying dormant for up to three years, had been transferred on-chain between August 11th and August 12th. The movement of these dormant assets has raised eyebrows among market watchers, signaling potential volatility ahead.

On August 11th, a notable transfer of 18,536 BTC, inactive for 2-3 years, occurred, exerting discernible pressure on Bitcoin’s price. This was followed by another shift of 5,684 BTC, dormant for 3-6 months, further amplifying concerns. The following day, August 12th, saw the movement of 4,986 BTC, which had been inactive for 3-12 months, alongside 2,394 BTC that had remained dormant for 3-5 years, continuing the trend.

“When such long-dormant Bitcoin resurfaces, it often triggers heightened selling pressure in the market,” XBTManager noted, cautioning that in periods of low liquidity, this could precipitate a downward trajectory in prices, with the potential for further declines.

However, not all analysts share this bearish outlook. In an August 14th investment note, reviewed by Cointelegraph, Tony Sycamore, an analyst at IG Markets, offered a more optimistic view on Bitcoin’s medium-term prospects. Sycamore pointed to improving macroeconomic conditions in the aftermath of last week’s $500 billion crypto market sell-off as a sign of potential recovery.

Sycamore highlighted that Bitcoin had been buoyed by the continued improvement in risk sentiment and a sell-off in US yields following unexpectedly soft US Producer Price Index (PPI) data. “With positioning significantly cleaner after last week’s false break below $50,000, we anticipate Bitcoin extending its gains toward trend channel resistance near $70,000 in the coming sessions,” he remarked.

Echoing a tone of cautious optimism, analysts from Glassnode, in an August 13th market report, observed a “discernible level of uncertainty” currently characterizing the market. Nonetheless, they pointed out an emerging tendency among market participants to HODL, particularly after Bitcoin reached a new all-time high in March. This trend suggests a shift in sentiment, with large wallet holders—often associated with ETFs—reverting to an accumulation phase.

The analysts concluded by noting that, despite the recent turmoil, the prevailing on-chain conditions indicate an “undertone of high conviction” among Bitcoin holders, hinting at potential resilience in the market’s future.