Decade-Old Bitcoin Wallets Move $40 Million, But Most Avoid Exchanges

Six bitcoin wallets that had remained untouched since between 2011 and 2014 recently moved a combined $40 million worth of bitcoin, reigniting speculation about early holders finally cashing out, though new data suggests such movement is actually slowing overall.

Dormant Wallet Activity Falls To Multi-Year Low

According to research from Galaxy Digital, six wallets moved a total of 553.59 BTC between August 16 and August 26, with one wallet remaining inactive for more than 15 years. Despite the attention such moves attract, the broader trend shows dormant bitcoin activity dropping to its lowest level since the third quarter of 2022. Galaxy’s research head noted that 2026 is on track to see less than half the dormant bitcoin movement recorded the previous year, following two unusually active years often described as a period of major early-holder distribution.

Movement Doesn’t Always Mean Selling

Blockchain data can show coins moving between wallets, but it cannot confirm whether the funds were sold, transferred to new storage, or moved to a custodian. Of the six wallets tracked this month, five sent funds to addresses unaffiliated with any known exchange, while only one transferred a portion of its holdings to a regulated European custody platform.

Legal Case Adds Another Layer

Two of the six wallets are linked to an ongoing legal case in which a plaintiff is attempting to claim ownership over tens of thousands of dormant bitcoin addresses under lost-property laws, using onchain notices to argue the coins may be considered abandoned.

Security Concerns Also Driving Wallet Activity

Separately, a hardware wallet vulnerability disclosed in July prompted a large wave of long-term holders to move their bitcoin into new wallets or custody solutions as a precaution. While concerns about future quantum computing threats have occasionally been raised in connection with old wallet activity, Galaxy’s research lead said such concerns have not been cited by major holders as a reason for selling, though some institutional investors have referenced quantum risk as a reason for staying cautious about buying.