as Bitcoin There is a noticeable trend among long-term holders, as evidenced by the 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
In a recent report from Santiment, a market intelligence and on-chain data platform, reveal The average age of Bitcoin stored in wallets has fallen sharply, reflecting increased activity among people. long term holder. 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. individual investor A chance to send 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 causes unpredictable market conditions and many major economic recession.
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 noted that the average dollar investment age for Bitcoin has dropped significantly since the launch of “Trump Pump” three weeks ago. donald trumpVictory in the recently concluded US presidential election held earlier this month. 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 confirmation that the crypto market is still experiencing relative stagnation. bull market As long as it keeps going down. 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 It is surging again towards a significant 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. further upward movement. 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.
Featured image from Unsplash, chart from Tradingview.com
