Bitcoin (BTC) Average Coin Age Has Been Trending Up Recently

An analyst has highlighted how the average age of a Bitcoin token has continued to increase during the recent bull run, a development that could be bullish for the asset’s price.

Bitcoin Average Coin Age Trended Up Recently

In a new post on X, CryptoQuant author Axel Adler Jr covered the recent activity in the Average Coin Age for Bitcoin. The “Average Coin Age” is an on-chain metric that follows how long, on average, a BTC token has remained dormant.

A coin is considered to be dormant when it sits still within an address and doesn’t participate in any kind of transaction activity. The longer a coin stays in this state, the more it ‘ages’ up.

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Here’s a 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 you can see in the above graph, the 30-day MA of the Bitcoin Average Coin Age saw some sharp spikes this year, but also some equally steep declines. This would suggest that the investors participated in some phases of HODLing, but they also didn’t shy away from taking some profits.

Overall, however, the holders showed a strong resolve, as the 365-day MA of the indicator trended up constantly ever since the 2022 bear market ended.

Statistically, the longer investors hold onto their coins, the less likely they become to sell them at any point. Hence, the fact that investors showed a preference, on average, to keep their coins dormant could be a bullish sign for the cryptocurrency’s price.

Interestingly, this trend didn’t develop during the 2021 bull market, as while the 30-day MA of the Average Coin Age saw a period of uptrend, the 365-day MA instead trended down throughout the year. This could imply that the average investor has become smarter this cycle.

In the short-term, the 30-day MA of the indicator saw a rapid climb, suggesting that the Bitcoin market is currently in one of the phases of active accumulation.

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In other news, market intelligence platform IntoTheBlock has shared an update on how the 5+ years old BTC supply is looking right now.

The chart shows that this portion of the Bitcoin supply has been increasing lately. Following the latest jump, almost a third of the asset’s tokens in circulation haven’t been involved in a transaction for over five years.

BTC Price

Bitcoin price saw a 3% decrease over the last 24 hours, bringing the asset’s price down to $95,900.