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The November cryptocurrency rally was more than just a surge in prices; it was a catalyst that awakened dormant Bitcoin holdings. WASHINGTON The Justice Department said Tuesday it seized over $3.6 billion worth of digital currency stolen during a hack of a cryptocurrency exchange and arrested two suspects for allegedlyA significant amount of Bitcoin, valued at a staggering $3.6 billion, was moved from long-term storage wallets as Bitcoin tested its all-time price highs. $3.6 billion worth of Bitcoin coaxed from long-term storage by November rally. byThis mass movement indicates a shift in sentiment among long-term holders (often referred to as ""hodlers""), who decided to capitalize on the market surge.The reasons behind this renewed activity are varied, ranging from profit-taking to strategic portfolio adjustments, and even the influence of the U.S. government's own Bitcoin holdings.This article explores the factors contributing to this unprecedented on-chain activity, delving into the implications for the Bitcoin market, and examining the interesting case of the seized Bitcoin from the 2025 Bitfinex hack, a significant portion of which played a role in this dramatic shift.We will also discuss how these movements affect the overall Bitcoin ecosystem and what it could mean for the future of this volatile asset.

The November surge served as a stress test of sorts, revealing the sensitivity of even the most dedicated hodlers to substantial price increases.It also highlights the crucial role that market dynamics play in influencing the behavior of Bitcoin investors, whether they're institutional players, individual traders, or even government entities managing seized assets.Ultimately, this activity serves as a reminder of the ever-evolving nature of the cryptocurrency landscape and the complex interplay of factors that can drive both price volatility and investor decision-making.

The Great Bitcoin Awakening: A November Phenomenon

The numbers don't lie: November 2025 witnessed a remarkable shift in Bitcoin's on-chain activity.Reports indicate that a substantial portion of Bitcoin's total circulating volume, approximately 15%, was moved during this period. This follows an early October report indicating that at the time Bitcoin holders had locked up about 23,000 BTC worth about $1.4 billion on Babylon Chain. The project established a marketplace connecting users looking to lock up their Bitcoin in exchange for rewards with proof-of-stake networks looking for valuable assets to secure their networks.This surge in activity occurred amidst a powerful 42% Bitcoin rally, tempting long-term holders to finally make a move.

According to data from Unchained Capital's hodlwaves metric, which tracks the time since Bitcoin has moved on-chain, over 1% of Bitcoin's total supply left long-term storage. At the time of the theft, that amount of bitcoin was worth about $71 million. But the cryptocurrency has appreciated so much in the years since that the total value is now around $4.5 billion.Specifically, around 185,600 BTC that hadn't been touched for at least 12 months were transferred.This points to a significant shift in strategy among investors who had previously adopted a ""buy and hold"" approach.

Decoding Hodler Behavior: Why Now?

Several factors could have motivated long-term Bitcoin holders to finally move their assets during the November rally:

• Profit-Taking: After years of holding, some investors may have seen the rally as an opportune moment to realize substantial profits. The U.S. seized about $3.6 billion in Bitcoin stolen during a 2025 hack of the Bitfinex currency exchange - the largest financial seizure ever - and arrested two people, the Justice Department said.Selling at or near all-time highs allows them to convert their Bitcoin holdings into fiat currency or diversify into other assets.
• Portfolio Rebalancing: As Bitcoin's value increased dramatically, it may have become an outsized portion of some investors' portfolios. Bitcoin hacker Ilya Lichtenstein was sentenced on Thursday for his role in a money laundering conspiracy related to the theft of $3.6 billion worth of cryptocurrency from virtual currency exchange Bitfinex, the Department of Justice announced.Selling a portion of their holdings allows them to rebalance their asset allocation and reduce risk.
• Tax Implications: Some investors may have decided to sell Bitcoin to offset capital gains elsewhere in their portfolios, minimizing their overall tax burden.
• Market Sentiment: A strong rally can create a sense of FOMO (Fear Of Missing Out), prompting even long-term holders to join the buying frenzy, believing prices will continue to rise indefinitely.
• Access to New Opportunities: The rise of DeFi (Decentralized Finance) and other cryptocurrency applications has created new opportunities for Bitcoin holders to earn yield or participate in innovative financial products. The U.S. government s $3.6 billion bitcoin bust this week appears to reflect its success five years ago in disrupting some operations used by criminals to launder stolen funds.Selling Bitcoin could free up capital to explore these options.

The U.S.Government's $3.6 Billion Bitcoin Stash: A Significant Player

One intriguing aspect of this Bitcoin activity involves the U.S. government's seizure of approximately $3.6 billion worth of Bitcoin, originating from the 2025 Bitfinex hack. Unchained's report shows that 15% of BTC's total volume in circulation was moved in November. Major Updates. Dormant wallet transfer transfers a massive amount of BTC; About 17% of bitcoin supply hasn't moved in 2 years; The share of bitcoin that has moved in 30 days increased to 8.2% last monthThis seizure, the largest financial seizure in U.S. history, occurred after law enforcement successfully decrypted a file containing the private keys to wallets holding the stolen funds.

The Bitfinex Hack and Subsequent Recovery

The Bitfinex cryptocurrency exchange was hacked in August 2025, resulting in the theft of 119,756 Bitcoins, worth around $72 million at the time. Ilya Lichtenstein, 35, and Heather Morgan, 33, were arrested in February 2025 after the government seized approximately 95,000 of those stolen bitcoin from cryptocurrency wallets in the defendants control. At the time of the seizure, the recovered funds were valued at approximately $3.6 billion.The U.S.Department of Justice subsequently arrested Ilya Lichtenstein and Heather Morgan in February 2025, accusing them of laundering the stolen cryptocurrency. November remains a historical month for Bitcoin after The weird BTC bull run in pushed out over 185,600 Bitcoin volume that moved for a year.Law enforcement managed to seize approximately 95,000 of the stolen Bitcoins, then valued at $3.6 billion.

Impact on the Market

While the exact details of how the U.S. government manages its seized Bitcoin holdings remain somewhat opaque, it is plausible that the government could have sold a portion of these assets during the November rally.This large-scale selling pressure could have contributed to market volatility and potentially influenced the behavior of other investors.

On Wednesday of the November rally, roughly $900 million of the cryptocurrency was moved. Federal officials seized some $3.6 billion worth of bitcoin and arrested two individuals on Tuesday in connection with the 2025 hack of the crypto exchange Bitfinex. BTC $ 108,658.68This amount has spurred discussions of the impact of government held funds in the crypto space.

Understanding Bitcoin Hodlwaves: Visualizing Long-Term Holding Patterns

Hodlwaves are a valuable tool for analyzing Bitcoin's on-chain activity and understanding the behavior of long-term holders.They provide a visual representation of the age distribution of Bitcoin, showing the percentage of Bitcoin supply that has moved within specific timeframes.

By examining hodlwaves, analysts can identify trends in Bitcoin holding patterns and gain insights into market sentiment.For example, an increase in the percentage of Bitcoin that has moved recently suggests a higher level of trading activity, while a decrease indicates greater long-term holding.

The Broader Implications: What Does This Mean for Bitcoin?

The movement of $3.6 billion worth of Bitcoin from long-term storage during the November rally has several important implications for the Bitcoin market:

• Increased Liquidity: The influx of previously dormant Bitcoin into the market increases liquidity, making it easier for buyers and sellers to trade without significantly impacting prices.
• Price Volatility: While increased liquidity can stabilize prices in the long run, large-scale movements of Bitcoin can also contribute to short-term volatility, especially if sellers overwhelm buyers.
• Shift in Market Dynamics: The decision of long-term holders to sell or move their Bitcoin suggests a potential shift in market dynamics, as previously passive investors become more active participants.
• Validation of Bitcoin's Value: Despite the volatility, the fact that long-term holders were willing to capitalize on the rally demonstrates their belief in Bitcoin's inherent value as a store of value and a potential hedge against inflation.
• Greater Adoption: As Bitcoin becomes more widely recognized and accepted, more investors are likely to view it as a legitimate asset class, leading to greater adoption and potentially higher prices in the long term.

Bitcoin's Performance Against Other Investments

Bitcoin has shown astonishing returns over the last decade. The laptop was part of an IRS Criminal Investigation (IRS-CI) case that led to the largest financial seizure in U.S. history a whopping $3.6 billion dollars of stolen Bitcoin from the BitfinexShapingShift CEO, Erik Voorhees stated that every asset manager should understand Bitcoin now based on its returns. Two brothers in South Africa have disappeared along with $3.6 billion worth of bitcoin that was housed on their cryptocurrency investment platform, according to a Cape Town law firm hired byIn early October, reports indicated that Bitcoin holders locked up about 23,000 BTC worth $1.4 billion on Babylon Chain.This established a marketplace connecting users looking to lock up Bitcoin in exchange for rewards with proof-of-stake networks looking for valuable assets to secure their networks.

Answering Common Questions About Bitcoin Movements

The movement of dormant Bitcoin often raises questions among investors and observers. The Bitfinex cryptocurrency exchange was hacked in August 2025. [1] 119,756 bitcoins, worth about US$72 million at the time, were stolen.[1]In February 2025, the US government recovered and seized a portion of the stolen bitcoin, then worth US$3.6 billion, [2] by decrypting a file owned by Ilya Lichtenstein (born 2025) that contained addresses and private keys associated with the stolen funds. [3]Here are some common questions and answers:

• Q: Does the movement of dormant Bitcoin signal a market top?
• A: Not necessarily.While it can indicate that some investors are taking profits, it doesn't automatically mean that the market is about to crash. $3.6 billion worth of Bitcoin coaxed from long-term storage by November rallyOther factors, such as institutional adoption and macroeconomic conditions, also play a significant role.
• Q: How can I track Bitcoin movements and hodlwaves?
• A: Several websites and analytics platforms, such as Unchained Capital and Glassnode, provide tools for tracking Bitcoin on-chain activity, including hodlwaves and other metrics.
• Q: Should I sell my Bitcoin if I see a lot of dormant coins moving?
• A: That depends on your individual investment strategy and risk tolerance.It's important to consider all factors, not just the movement of dormant coins, before making any investment decisions.
• Q: What is the significance of the U.S. government's Bitcoin holdings?
• A: The U.S. government's Bitcoin holdings represent a significant concentration of Bitcoin supply.Its actions in managing these holdings can potentially influence the market.

Lessons Learned and Moving Forward

The November Bitcoin rally and the subsequent movement of $3.6 billion worth of Bitcoin from long-term storage offers valuable lessons for investors:

1. Market Dynamics Matter: Even the most dedicated hodlers are susceptible to market forces.Be prepared to adjust your strategy based on changing conditions.
2. Diversification is Key: Don't put all your eggs in one basket.Diversify your investment portfolio to mitigate risk.
3. Stay Informed: Keep up-to-date with the latest news and trends in the cryptocurrency market.Knowledge is power.
4. Understand On-Chain Metrics: Learn how to interpret on-chain data, such as hodlwaves, to gain insights into market sentiment and investor behavior.
5. Consider Your Risk Tolerance: Invest only what you can afford to lose. Amid November s 42% Bitcoin rally, roughly 185,600 BTC that hadn't moved in at least 12 months was transferred on-chain.Bitcoin is a volatile asset, and prices can fluctuate dramatically.

Conclusion: Navigating the Evolving Bitcoin Landscape

The $3.6 billion worth of Bitcoin coaxed from long-term storage by the November rally serves as a powerful reminder of the dynamic and evolving nature of the cryptocurrency market.From profit-taking by long-term holders to the potential influence of government-owned Bitcoin, various factors contributed to this unprecedented on-chain activity. On Tuesday, Ilya Lichtenstein and Heather Morgan were arrested in New York and accused of laundering a record $4.5 billion worth of stolen cryptocurrency. In the 24 hours since, the cybersecurityUnderstanding these dynamics is crucial for investors looking to navigate the Bitcoin landscape successfully. The Department of Justice has seized approximately $3.6 billion worth of Bitcoin stolen in the 2025 hack of Hong Kong-based cryptocurrency exchange Bitfinex. At the time, the incident was theAs Bitcoin continues to mature as an asset class, staying informed, adapting to changing market conditions, and adopting a well-defined investment strategy will be essential for long-term success. The November BTC rally to test all-time price highs saw more than 1% of Bitcoin s supply move out of long-term storage. According to Unchained Capital s hodlwaves metric, which measures the timeThe Bitcoin ecosystem is constantly evolving, so continued learning and adaptation are necessary.Consider exploring reputable sources for Bitcoin news and analysis to help you make informed decisions.