While Bitcoin is regaining significant upward momentum, there are notable trends among long-term holders, as evidenced by a significant decline in the average age of wallets holding BTC. . This trend signals a change in market dynamics, prompting retailers and institutional investors to reposition their positions in anticipation of future price movements.
Continuous decline in average BTC holdings
A recent report from Santiment, a market intelligence and on-chain data platform, reveals that the average age of Bitcoin stored in wallets is rapidly decreasing, reflecting increased activity among long-term holders. It became. Data from Bitcoin’s key average investment age metric shows that the average age of BTC wallets has decreased since last year.
Specifically, a decline in this indicator means that more coins are starting to return to mainstream circulation from old wallets, providing an opportunity for retail investors to transfer BTC to each other. On the other hand, the rise in the indicator suggests that the coin is becoming increasingly stagnant, as seen between May 2021 and October 2023, which could influence market trends .
During this period, Santiment noted that the average age of Bitcoin peaked within 637 days of the end of the market cycle. This rise ultimately caused unpredictable market conditions and led to many severe economic downturns.
Average Bitcoin usage period decreases by 47 days | Source: Santiment of X
Santiment said that since the start of this bullish signal 13 months ago, the average age of BTC has decreased, particularly in mid-October 2023, dropping from 637 days to its initial peak to just 466 days. He emphasized that there is. Therefore, on average, all coins on the network are in wallets that are 27% younger.
The platform also announced that the average dollar investment age for Bitcoin has increased since the launch of the “Trump Pump” three weeks ago, following Donald Trump's victory in the recently concluded US presidential election earlier this month. It was also noted that there was a significant decline in After the “Trump Pump,” data shows that the average wallet is now 9% younger than it was three weeks ago, showing how much stagnant wallets have come out of hibernation.
As a result, Santiment argued that this average investment age line for Bitcoin should be considered as evidence that the relative bull market will continue as long as the crypto market continues to decline. Therefore, the market capitalization is likely to continue rising.
Bitcoin price heads towards a major barrier
After a recent drop to the $91,000 level, BTC is once again surging towards a key resistance level. This recovery has increased optimism and confidence in the near-term potential of crypto assets, with the $100,000 milestone soon to be reached.
As of this writing, Bitcoin has broken through the $95,000 barrier and is aiming for even higher levels. Up nearly 3% in the past 24 hours, BTC is showing strength for further gains. Although crypto assets are on the rise again, there appears to be some bearish sentiment in the market, as evidenced by a 22% drop in trading volume over the past day.
BTC trading at $95,389 on 1D chart | Source: BTCUSDT on Tradingview.com
Featured image from Unsplash, chart from Tradingview.com
