- Active Bitcoin supply rose 7.7% as long-lost coins moved again after the ETF launch.
- The BTC price surge prompts old holders to reposition or sell after years of silence.
- Bybit sees a $1.52B Open Interest spike even as the Bitcoin price drops, raising red flags.
The launch of the Bitcoin ETF at the start of 2024 has brought with it some shocking occurrences within the sector. One of the most noticeable is the silent Bitcoin waking up again. Coins that were assumed to be lost for good are trading again.
The development, captioned by crypto monitor Alphractal, shows just how great an effect the ETF has had. Data confirms the trend. The active supply of Bitcoin increased from 11.54 million BTC to 12.43 million BTC. That’s up by 0.89 million BTC or 7.7%.
On the other hand, based on current prices, the loss of those coins that were purported to be 8.05 million BTC has dropped to 7.46 million BTC. That’s a loss of 7.3%. Such reconciliations reflect older investors moving their assets to new wallets or selling when prices are at highs.
At present, BTC is trading at $117,972.50. The rally seems to be inspiring investors who were inactive for years to make a move at least. Institutional demand is higher, and these reactivated coins are stoking up the already volatile pricing.
Also Read: Bitcoin Nears $120K as Ethereum Eyes $4K Breakout, Is Altcoin Season Next?
ETF Boosts Market Confidence and Activity
The ETF isn’t just attracting new money; it’s also waking up the old. Long-term holders who kept their assets untouched for years are now shifting them. This behavior is typical in rising markets. As prices go up, so does the desire to take profits or secure holdings more carefully.
It’s also a sign of increased trust. Institutions entering the space have added a layer of legitimacy. The ETF gave both retail and professional investors easier access to Bitcoin, and that access is now having ripple effects throughout the market. This renewed movement of old coins shows how much attention Bitcoin is getting again.
Bitcoin Open Interest Surges $1.52B on Bybit
While dormant coins are waking up, something unusual is happening on the derivatives side. Alphractal also reported a major spike in Bitcoin Open Interest on Bybit. Within 24 hours, the exchange saw an increase of $1.52 billion. This sharp rise came even as BTCn’s price fell, which is not a typical pattern.
Usually, rising Open Interest lines up with price gains. But this time, the increase happened while the price dropped. That suggests something different may be building, possibly a wave of speculative trades or a rise in short positions. This isn’t the first time Bybit has shown this kind of move, and it often signals that volatility is on the horizon.
Also Read: Metaplanet Buys 780 More Bitcoin: Japan’s BTC Treasury Now Tops $1.7 Billion
