In recent weeks, Bitcoin’s price rise has begun to slow down, which has made people question how far the cryptocurrency’s bull cycle will go.
The value of the most popular coin declined from $70,000 to less than $67,000 on Friday, April 12. The crypto market went down swiftly.
This latest decrease proves how challenging it is for BTC to get back to its recent high point of $73,737, which it hit in the middle of March. Santiment, an on-chain analysis tool, has found a certain Bitcoin metric that could mean the bull market is back.
A blockchain intelligence company called Santiment recently released an update on X that gave information about the current cycle and the way Bitcoin’s price is performing.
The company stated that the Mean Dollar Invested Age measure was an important one to keep an eye on since the market leader remains fairly secure.
Bitcoin’s Investment Age Analysis
Santiment states that the Mean Dollar Invested Age number finds the average age of investments in the same asset that are kept in the same wallet. A sign that is going up shows that investments are staying the same and old coins are staying in wallets.
On the other hand, a falling Mean Dollar Invested Age measure demonstrates that investments are moving around more quickly, which means that more people are participating in the network.
According to Santiment, Bitcoin has shown a declining Mean Dollar Invested Age line during earlier bull runs. This is also happening during the current bull run, which started in late October 2023.
The on-chain analytics platform did notice, though, that Bitcoin’s Mean Dollar Invested Age line has been fairly flat over the last few weeks. This is unusual, since the halving event is due to happen in about a week.
The Bitcoin halving event will cut miners’ earnings in half, from 6.25 BTC to 3.125 BTC. Most investors see this as an encouraging sign for the most popular cryptocurrency in 2024.
Based on Santiment’s most recent report, investors should keep a close eye on the Bitcoin Mean Dollar Invested Age measure. If BTC’s Mean Dollar Invested Age line starts to fall again, it could mean that significant players like whales are actively moving coins again, which could mean that the bull run will continue.
Bitcoin is worth about $66,548, which is an enormous decrease of 6% in the last 24 hours.
