The recent decrease in Bitcoin price has raised concerns about the continuation of the crypto bull cycle. The flash crash on April 12 led to a drop in the premier cryptocurrency’s value from $70,000 to below $67,000, indicating a struggle to reach the previous all-time high of $73,737 set in mid-March.
On-chain analytics platform Santiment has highlighted the Mean Dollar Invested Age metric as a key indicator for monitoring the progress of the market leader. This metric tracks the average age of investments in Bitcoin that have been held in the same wallet. A rising Mean Dollar Invested Age suggests stagnant investments, while a decreasing metric indicates a flow of investments back into circulation, accompanied by an increase in network activity.
Throughout previous bull cycles, Bitcoin has demonstrated a decrease in Mean Dollar Invested Age. This trend has continued in the current bull run that began in late October 2023. However, Santiment has observed that Bitcoin’s Mean Dollar Invested Age has remained stable in recent weeks, despite the upcoming halving event that is typically viewed as a bullish indicator for the cryptocurrency market.
Investors are advised to closely monitor the Bitcoin Mean Dollar Invested Age metric, as a resumption of the downward trend could signal a positive sign for the continuation of the bull run. This would indicate that major stakeholders, such as whales, are returning to circulating their coins. As of the latest data, Bitcoin is trading around $66,548, reflecting a 6% decline in price over the past 24 hours.
The fluctuation in Bitcoin price and the analysis of the Mean Dollar Invested Age metric provide valuable insights for investors in the cryptocurrency market. While the recent stability in Bitcoin’s Mean Dollar Invested Age raises questions about the future direction of the bull run, a potential resumption of the downward trend could signal renewed investor confidence and activity in the market. It is essential for investors to conduct their own research and analysis before making any investment decisions in the volatile cryptocurrency market.
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