The crypto analytics firm Santiment says Bitcoin (BTC) is likely heading higher if one key trend continues.
According to Santiment, if the Mean Dollar Invested Age (MDIA) metric keeps declining, the chances are high for Bitcoin to start surging again.
The MDIA metric is the average age of all tokens sitting on each wallet on the coin’s network. A declining MDIA is considered bullish as it indicates long-dormant coins are coming back into circulation, increasing network activity.
“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.”
Santiment notes the MDIA declined very quickly after pro-crypto candidate Donald Trump was elected on November 5th as the next US president, which coincided with Bitcoin’s rally to nearly $100,000.
“In particular, Bitcoin’s Mean Dollar Invested Age has really dropped rapidly since the ‘Trump Pump’ began three weeks ago. The average wallet is 9% younger than it was just three weeks ago, revealing just how much stagnant wallets have come out of hibernation.”
Santiment also shares a chart that shows the MDIA began to decline in October 2023 as Bitcoin began to rally.
“In short, bull markets are validated (in large part) by this pink line [the MDIA metric] moving down because it indicates that previously stagnant wallets are moving their old coins back into circulation to create higher utility…
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.”
Bitcoin is trading for $96,746 at time of writing.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Follow us on X, Facebook and Telegram
Generated Image: DALLE3
Read the full article here