Key notes
- Wallets inactive for 3-5 years moved 32,322 BTC worth $3.9 billion, marking the largest permanent movement of the year.
- Selloff raised $620 million in crypto liquidations, with 74% coming from long positions across the market.
- Bulls cut liquidation losses from 74% to 55% within hours, indicating potential stabilization around $120,000 support.
Bitcoin
BTC
$122 079
24 hour fluctuation:
2.5%
Market cap:
$2.44
Vol. 24H:
$77.35 b
The price never touched new highs above $126,192 on Monday, October 6, before retreating 4% towards $120,000 amid intense gains on Tuesday. On-chain data shows that the pullback coincides with unusual activity from dormant portfolios, while derivatives indicators point to early rebound prospects.
With Bitcoin’s 4% correction on Tuesday, J. Martin, an analyst at Cryptoquant, alerted his 42,700 followers to on-chain data showing long-term holders taking profits at the top.
Only now
32,322 BTC (~$3.93B) just moved on-chain from wallets that had been dormant for 3 to 5 years.
This is the biggest Bitcoin move in 3 years to 5 years so far. pic.twitter.com/9vvbadcrda
– Market (je_mismun) October 7, 2025
According to Martin, wallets that have been inactive for 3 to 5 years were seen moving 32,322 BTC, worth approximately $3.9 billion, the largest single-day transfer from dormant wallets of the year.
Such a rise in long-term portfolio activity introduces short-term downward pressure. First, the re-introduction of such large amounts of long Bitcoin over a short period dilutes the circulating supply and amplifies sell-side pressure. Second, it upsets new entrants, who may delay purchases to avoid the hair-trigger effect from active long-term standalone selling.
Bulls aim for early bounce as crypto boxes rise $620 million
Historical trends show that large dormant movements are near the tops of the Bitcoin Bull cycle. However, active demand among Crypto ETFs and corporate treasuries could see dormant BTC supplies absorbed by buyers during a correction phase.
Bitcoin’s 4% correction amid $3.9 billion long sell-off led to widespread volatility across crypto markets, causing a total of $620 million, According to coinglass data. Long positions that were closed of $454.87 million accounted for 74% of the losses, while shorts saw $165.44 million wiped out.
However, derivatives data suggests that bulls are starting to experience selling momentum. On shorter time frames, liquidation ratios show a narrow gap between long and short positions.
Crypto bulls cut loss from 74% to 55% Coinglass, October 7, 2025
At the time of this report, total liquidations over the last hour were $12.42 million with $6.28 million and $6.15 million in shorts, with bulls down to 54% of the 55% occurrence.
A gradual reduction in long recurrence dominance signals that bulls are regaining balance, equating to bearish price action with covering positions, as Bitcoin stabilizes around the $120,000 support area.
On Tuesday, JPMorgan Chase CEO Jamie Dimon also Announced the US government shutdown It is unlikely to affect the financial markets.
BlackRock’s ETF inflows, and reaffirmation of long-term buy commitment following $3.9 billion in Q3 earnings could spark investor confidence in Bitcoin price discovery. A rebound from $120,000 could spark a breakout attempt worth $130,000 Markets are anticipating a US Federal Reserve rate cut resolution.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to provide accurate and timely information but should not be considered financial or investment advice. Because market conditions can change rapidly, we encourage you to verify your information and consult with a professional before making any decisions based on this content.
Ibrahim Ajibade is an experienced research analyst with a background in supporting various startups and financial organizations at Web3. He has his undergraduate degree in Economics and is currently studying for a Masters in Blockchain and Distributed Ledger Technologies at the University of Malta.
The post Dormant Bitcoin Wallets Move $3.93B as Profit-Taking Sparks $620M Crypto Liquidations first appeared on Investorempires.com.
