The cryptocurrency market is experiencing a significant altcoin breakout following Bitcoin’s rise above $97,300.
A crucial on-chain metric, Bitcoin’s Mean Dollar Invested Age, is signaling strong bullish momentum, as it shows a notable drop in the average age of BTC held in wallets across the network.
On November 27, the Bitcoin spot ETF had a total net inflow of $103 million. The Ethereum spot ETF had a total net inflow of $90.1029 million, with net inflows continuing for 4 consecutive days.https://t.co/59u0BnEqLG
— Wu Blockchain (@WuBlockchain) November 28, 2024
This metric is vital for assessing market trends, as a declining Mean Dollar Invested Age suggests that previously idle coins are re-entering circulation, increasing network utility. Historically, bull markets often align with this downward movement. From May 2021 to October 2023, the metric climbed steadily, reflecting increased coin stagnancy and leading to unpredictable market conditions and significant corrections. At its peak, the average age of BTC reached 637 days.
However, since mid-October 2023, a shift has occurred. The Mean Dollar Invested Age has been dropping steadily, with older coins moving out of long-term storage and back into active circulation. Over the past 13 months, the average age of BTC has declined from 637 days to 466 days—a 27% reduction. This trend signals a rejuvenation of network activity, with coins changing hands more frequently among retail traders.
📊 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… pic.twitter.com/e2zTxc2Qoo
— Santiment (@santimentfeed) November 27, 2024
Notably, the metric has seen a sharp decline in the past three weeks, coinciding with the so-called “Trump Pump.” During this period, the average wallet age has decreased by 9%, underscoring the surge in activity from previously dormant wallets.
As long as Bitcoin’s Mean Dollar Invested Age continues to decline, it serves as a strong indicator that the crypto market remains in a bullish phase. This increased activity enhances the likelihood of market capitalization growth.
Adding to the optimism, on November 27, Bitcoin’s spot ETF recorded a net inflow of $103 million, further supporting the upward trend.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.