📊 Bitcoin's crucial Mean Dollar Invested Age metric is revealing a rapid drop in the average age of each BTC that has been sitting in each wallet on the network. In short, bull markets are validated (in large part) by this pink line moving down because it indicates that previously stagnant wallets are moving their old coins back into circulation to create higher utility.
📉 From May, 2021 to October, 2023, this Mean Dollar Invested Age was rising, indicating coins were getting more and more stagnant. As a result, markets were quite unpredictable and had several major downswings. The average age of BTC peaked at around 637 days at the end of this cycle.
📈Since mid-October, 2023, the Mean Dollar Invested Age began dropping, indicating coins began coming out of older wallets and back into main circulation and allowing retail traders to transfer them among one another. The average age of BTC, since this bullish signal began 13 months ago, has dropped from 637 days to just 466 days. This shows that each coin on the network, on average, is in a wallet that is 27% younger.
In particular, Bitcoin's Mean Dollar Invested Age has really dropped rapidly since the 'Trump Pump' began 3 weeks ago. The average wallet is 9% younger than it was just 3 weeks ago, revealing just how much stagnant wallets have come out of hibernation.
As long as this Mean Dollar Invested Age line for BTC continues dropping, it should be considered as validation that crypto markets are still in a relative bull market, and the odds of market caps continuing to grow are at a much higher probability than usual. 👍
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