Average Age of Bitcoin Wallets Dropping Sharply, is This Bullish?
Bitcoin's Bullish Momentum: Santiment Report Unveils the Impact of Long-Term Holder Activity and the 'Trump Pump'
Recent data from Santiment reveals a massive decline in the average age of Bitcoin wallets, suggesting a shift in market and investor activity. Moreover, this trend indicates bullish sentiments, but what does it mean for Bitcoin’s future?
Decline in Bitcoin Wallet Age
According to the report, the Mean Dollar Invested Age (MDIA) metric of Bitcoin, has been on a steady decline since mid-October 2023. This metric measures the average age of Bitcoins stored in wallets. A decrease in this figure means dormant coins are being moved back into circulation indicating increasing market activity.
Additionally, over the last 13 months, Bitcoin’s average wallet age has fallen from a peak of 637 days to 466 days showing a substantial 27% drop. The report attributes the “Trump Pump” as a significant driver of this trend.
Following Donald Trump’s recent election victory three weeks ago, market confidence surged, awakening previously dormant wallets. In the past three weeks, Bitcoin’s MDIA has plummeted further by 9% boosting Bitcoin’s liquidity.
Trump’s pro-crypto stance and policies have instilled confidence in investors who are willing to capitalize on the current market uptrend cycle to make a profit on their Bitcoin holdings.
Implications for the Current Bitcoin Market Cycle
The persistent decline in Bitcoin’s MDIA signals a continuation of the current bull cycle. Now, with more coins in circulation and actively changing hands, market confidence is growing, and Bitcoin’s capitalization appears ready for further growth.
Therefore, as long as the MDIA keeps falling, the odds of sustained price increases remain high. This metric validates the market’s bullish trajectory, convincing long-term holders to return to active trading.
Bitcoin’s price movements align with the bullish narrative. After recovering from a brief dip to $91,000, the cryptocurrency has surged to a current price of $96,382 according to CoinGecko. Although trading volume has decreased by 22% in the past 24 hours, many experts believe it is closing in on the highly anticipated $100,000 milestone before Trump’s inauguration.
