Citing Crypto Economy, a recent study by Glassnode has revealed a significant relationship between the age of Bitcoin coins and their spending patterns. The research, which analyzed Bitcoin UTXO data from 2015 to November 2024, highlights a power-law dynamic that influences the likelihood of coins being spent as they age. This finding offers valuable insights for traders, investors, and analysts in refining on-chain analysis and developing effective trading strategies. The study shows that younger coins are more likely to be spent, while older coins tend to become dormant. This transition from active trading to long-term holding behavior is a key discovery. By understanding these patterns, stakeholders can predict potential liquidity shifts and better gauge market sentiment, enhancing their investment strategies.
Glassnode Study Links Bitcoin Dormancy to Spending Patterns
KuCoin NewsShare
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.