This Metric Shows Bitcoin is Still in a Bull Market: Santiment

Over the past week, bitcoin (BTC) has lingered between $90,000 and $98,000 as investors take profits. Regardless, most market participants believe the asset surpassing $100,000 is a matter of when, not if, so they anticipate a rally past the target price.

Amid several predictions on the cryptocurrency’s price trajectory, market analytics platform Santiment has identified a metric that validates that BTC is still in a bull phase and that the market capitalization of the digital asset will continue to grow. Hence, BTC will eventually surge past $100,000 as long as this metric continues in its current state.

The Mean Dollar Invested Age Metric

According to Santiment, Bitcoin’s Mean Dollar Invested Age, a metric that reflects the average period that all current BTC holders have held their coins, is showing a rapid drop. Notably, this metric also indicates the average age of every dollar invested in the market cap of BTC.

An uptick in the Mean Dollar Invested Age suggests that investors are holding BTC for the long term, while a plunge in the metric indicates increased transaction activity.

Santiment revealed that the drop in Bitcoin’s Mean Dollar Invested Age means there is a decline in the average age of each BTC in every wallet on the network. This indicates that Bitcoin wallets that have been stagnant for a significant period have been moving their old coins into circulation to create higher utility. This trend often validates that the crypto market is in a bull phase.

Bitcoin Still in Bull Cycle

In the 42 months leading up to October 2023, on-chain data showed the Mean Dollar Invested Age was rising, signaling that several bitcoins were getting more stagnant. The average age of BTC peaked at 637 days, and the rise resulted in the Bitcoin market becoming unpredictable and experiencing several downswings. 

However, the Mean Dollar Invested Age began to decline in October 2023 as coins began to leave older wallets and enter main circulation. Retail traders began to transfer coins among themselves, and the metric dropped from 637 days to 466 days, indicating that each coin on the Bitcoin network is an average of 27% younger.

The drop quickened after Donald Trump won the U.S. presidential elections earlier this month. The average wallet is currently 9% younger than it was three weeks ago, indicating that most stagnant wallets have come out of hibernation. 

Santiment says the BTC will remain in a bull season if the Mean Dollar Invested Age line continues dropping.