Emily Walker
As Bitcoin’s price momentum increases, a significant trend has emerged among long-term holders, marked by a notable decrease in the average age of Bitcoin wallets. This shift reflects changing market conditions, leading both retail and institutional investors to adjust their strategies in anticipation of potential price changes.
Declining Average Age of BTC Holdings
According to a recent report from Santiment, a platform specializing in market insights and on-chain data, the average age of Bitcoin in wallets has decreased significantly, indicating heightened activity among long-term holders. The data shows that Bitcoin’s Mean Dollar Invested Age has been on a downward trend since last year.
This decline indicates that more Bitcoin is circulating from older wallets, enabling retail investors to trade among themselves. Conversely, an increase in this metric typically signifies that coins are remaining dormant, potentially affecting market behaviors, a pattern observed from May 2021 to October 2023.
During this period, Santiment reported that the average age of Bitcoin reached a peak of 637 days at the end of the previous market cycle, contributing to erratic market conditions and notable downturns.
Santiment pointed out that since the bullish trend began 13 months ago, particularly around mid-October 2023, Bitcoin’s average age has declined from 637 days to just 466 days, which means Bitcoin stored in wallets is now, on average, 27% younger.
Furthermore, after the recent “Trump Pump” triggered by Donald Trump’s victory in the U.S. presidential election, the Mean Dollar Invested Age for Bitcoin has markedly decreased, with the average wallet becoming 9% younger over the past three weeks. This indicates a resurgence of previously dormant wallets.
In this context, Santiment emphasized that the declining Mean Dollar Invested Age should be viewed as a sign that the cryptocurrency market is still experiencing a relative bull trend, increasing the likelihood of rising market caps.
Bitcoin Price Moves Towards Key Resistance Levels
Following a recent drop to around $91,000, Bitcoin is now moving again toward important resistance levels. This rebound has sparked optimism regarding the crypto asset’s short-term prospects, heightening expectations for it to reach the $100,000 mark soon.
Currently, Bitcoin has surpassed the $95,000 threshold and is targeting even higher levels. With a nearly 3% increase in the past 24 hours, BTC displays potential for further growth. However, despite this resurgence, bearish sentiments are present in the market, reflected by a 22% decline in trading volume over the last day.