Dormant Bitcoin Freeze Looms Over Cryptocurrency Market

The potential freeze of 5.6 million dormant Bitcoin has raised concerns among investors and experts about the impact on the cryptocurrency market.

A freeze of this magnitude could trigger a sharp supply shock, leading to a drop in Bitcoin's price by 30-50%, affecting altcoins and traditional markets as well.

Regulatory actions targeting custodians or exchanges holding dormant coins, or exploiting technical vulnerabilities, could result in partial freezes, making it challenging for investors to predict the market's response.