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The great Bitcoin awakening appears to be hitting snooze. Galaxy Digital’s Head of Research Alex Thorn has concluded that the most significant redistribution of long-dormant Bitcoin since the 2017 market cycle is largely finished, with activity from older coins declining sharply as 2026 progresses.
Thorn projects that the reactivation of these older coins will fall to less than half of the levels observed in 2025, signaling a distinct cooldown in what had been one of the more closely watched dynamics in Bitcoin’s recent history.
The $9 billion transaction that started it all
The centerpiece of this redistribution wave was a transaction Galaxy Digital itself facilitated. In July 2025, over 80,000 BTC moved from a wallet originating in the Satoshi era, a transfer valued at approximately $9 billion at the time. Galaxy executed the sale on behalf of an early investor, making it one of the largest single Bitcoin transactions ever recorded.
That transaction became something of a bellwether for the broader trend. Throughout 2025 and into early 2026, coins that had been dormant for years began appearing in on-chain data with increasing regularity. Galaxy published research reports in October 2025 and May 2026 analyzing these wallet movements, tracking the patterns as ancient Bitcoin flowed back into circulation.
The legal wildcard: 3.8 million BTC in limbo
Running parallel to the redistribution trend is a legal battle that could reshape Bitcoin ownership on a scale never before attempted. A group of plaintiffs filing under the pseudonym “Noah Doe” submitted a case in New York Supreme Court in March 2026 seeking to assert constructive possession over approximately 3.7 to 3.8 million BTC spread across roughly 39,000 dormant addresses. The legal theory appears to rest partly on dusting campaigns, where small amounts of Bitcoin were sent to dormant addresses, which the plaintiffs then use to argue a basis for ownership claims.
What this means for investors
The practical takeaway from Thorn’s analysis is that one of Bitcoin’s persistent overhang risks is diminishing. With the redistribution wave now assessed as mostly complete, the selling pressure from this particular cohort should ease. For traders who’ve been watching dormant supply metrics as a risk indicator, the signal is shifting from cautionary to neutral.
The Noah Doe litigation complicates the picture considerably. The proceedings themselves create uncertainty around how markets should price dormant supply risk, and a case of this scale could take years to resolve. If the Noah Doe case gains any traction, even procedurally, the market will need to reassess whether 3.8 million BTC should be considered permanently dormant or potentially active supply.
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