Bitcoin active addresses spike to 0.98M, but spike may signal security concerns

Bitcoin active addresses spiked to 0.98 million in a 24-hour period, reaching their highest level since December 2024. The surge may reflect security concerns rather than renewed investor demand. Many Coldcard users likely moved funds into newly created wallets after a firmware vulnerability became public, requiring on-chain transactions that pushed the active address count higher.

The spike coincided with activity from early Bitcoin holders. One long-dormant wallet moved 49.97 BTC, worth approximately $3.23 million, after holding unopened for nearly 15 years. The holder acquired Bitcoin on July 16, 2011, when it traded around $10, and the holdings have since appreciated over 634,000%. Another early investor transferred 50 BTC, valued at roughly $3.22 million, after ten months of inactivity, moving funds that were originally purchased between $10 and $15.

Dormant wallet activity typically draws attention because it can precede selling, though neither transfer confirmed a sale. The second cluster had previously sent funds to new addresses before transferring to exchanges or FalconX, a pattern that may signal preparation for an over-the-counter transaction. Bitcoin was trading at $64,672.05 at the time of reporting, with the RSI showing bullish momentum above neutral territory, though the MACD and signal line provided no clear directional indication. Since October, Bitcoin's market capitalisation has declined $665 billion, bringing its valuation to $1.29 trillion, a 25.98% drop for the year.