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\n\t\t\t\t\t\t\t\t\tOver 470,000 BTC left dormancy in 2025, mostly tied to custody shifts, rather than capitulation, analysts say.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
Bitcoin\u2019s Taproot address supply has fallen by roughly 3% since January 2024, according to on-chain analyst Willy Woo.<\/p>\n
The decline is sparking debate across the crypto community, with experts split on whether long-term holders (LTHs) are quietly selling or simply repositioning their funds amid rising concerns about quantum computing threats.<\/p>\n
Data shared by Woo on X shows Taproot addresses, Bitcoin\u2019s latest transaction format, trending downward since early 2024. The analyst explained<\/a> that this shift might not signal panic selling but rather \u201chousecleaning\u201d by early holders, who are moving BTC to more secure or custodial setups.<\/p>\n \u201cWhat constitutes an \u2018OG dump\u2019 is simply BTC moving out of an address untouched for seven years,\u201d Woo wrote, adding<\/a> that on-chain data can misinterpret such activity as selling when it often reflects reorganization or collateral posting.<\/p>\n Fellow analysts, including Charles Edwards of Capriole Investments, countered<\/a> that large-scale movements by early Bitcoin holders usually correlate with sell pressure. \u201cWe know this empirically,\u201d he said, pointing to colorful on-chain charts showing hundreds of millions in old BTC moving in 2025.<\/p>\n Others, however, supported Woo\u2019s view. On-chain researcher Shanaka Anslem Perera noted<\/a> that around 470,000 BTC, worth about $50 billion, has left dormancy this year, but much of that movement involved custody rotations and treasury placements rather than market sales. \u201cThe story is not capitulation,\u201d he wrote, \u201crather it\u2019s custody evolution, collateralization, and an institutional catcher\u2019s mitt.\u201d<\/p>\n The timing of these Taproot withdrawals has coincided with growing unease over Bitcoin\u2019s long-term resilience against quantum computing attacks. In July 2025, developers proposed<\/a> \u201cP2QRH,\u201d a quantum-resistant address type aimed at protecting up to 4 million vulnerable BTC, roughly 25% of the supply, from future key exposure risks.<\/p>\n The urgency grew after Project Eleven launched<\/a> its Q-Day Prize challenge in April, offering 1 BTC to anyone who could crack Bitcoin\u2019s cryptography using Shor\u2019s algorithm before April 2026. The experiment, designed to test whether real quantum hardware can threaten Bitcoin\u2019s elliptic curve encryption, reignited debate about how soon the network might face real cryptographic stress.<\/p>\n Hardware makers are also responding<\/a>, with Trezor announcing the Safe 7 wallet, its first \u201cquantum-ready\u201d self-custody device, in October.<\/p>\nQuantum Fears Drive Custody Shifts<\/h2>\n
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