An analyst has explained how the age of the average Bitcoin token has only been getting older during the recent bull run, something that could be bullish for the asset’s price.
Bitcoin Average Coin Age Has Been Trending Up Recently
In a new post on X, CryptoQuant author Axel Adler Jr has talked about the recent trend in the Average Coin Age for Bitcoin. The “Average Coin Age” is an on-chain metric that keeps track of how long the average BTC token has been staying dormant for.
A coin is said to be dormant when it sits still inside an address without being involved in any sort of transaction activity. The longer the coin stays in this state, the more it ‘ages’ up.
Now, here is the chart shared by the analyst that shows the trend in the 30-day and 365-day moving averages (MAs) of the Bitcoin Average Coin Age over the last few years:
As is visible in the above graph, the 30-day MA of the Bitcoin Average Coin Age has seen some sharp spikes this year, but also some equally steep declines. This would suggest that the investors have been participating in some phases of HODLing, but they have also not been shying away from taking some profits.
On the whole, however, the holders have shown notable resolve, as the 365-day MA of the indicator has been in a constant state of uptrend since the end of the 2022 bear market.
Statistically, the longer investors hold onto their coins, the less likely they become to sell them at any point. As such, the fact that the investors have been increasingly preferring to keep their coins dormant can be a bullish sign for the cryptocurrency’s price.
Interestingly, this trend didn’t develop during the 2021 bull market, as even though the 30-day MA of the Average Coin Age saw a period of uptrend, the 365-day MA moved down throughout the year instead. This could imply the average investor has become smarter this cycle.
In the short-term, the 30-day MA of the indicator has been rapidly climbing, which implies the Bitcoin market is currently in one of the phases of active accumulation.
In some other news, the market intelligence platform IntoTheBlock has shared an update on how the 5+ years old BTC supply is looking right now.
From the chart, it’s apparent that this part of the Bitcoin supply has been on the rise recently. Following the latest jump, nearly a third of the asset’s tokens in circulation haven’t been involved in a transaction since more than five years ago.
BTC Price
Bitcoin has seen a 3% drawdown during the last 24 hours that has taken its price to $95,900.
The post Bitcoin Tokens Have Only Been Getting Older This Bull Run, Analyst Reveals appeared first on Crypto Breaking News.
