According to new statistics released by Ki Young Ju, CEO of CryptoQuant, the average Bitcoin (BTC) dormancy has increased to a 13-year high. This increase in dormancy points to a substantial transfer of older Bitcoins to new owners, which might change the composition of the cryptocurrency’s ownership.
The Average Dormancy of Bitcoin hit a level of 227.684 on March 23, according to a graphic that Ki Young Ju posted on X. The average number of “destroyed days” for shifted coins is called average dormancy. By dividing Coin Days Destroyed (CDD) by the total amount of coins moved, this number is computed.
What’s happening?
An approaching price decline may be indicated by long-term holders transferring or maybe selling their coins, which is often indicated by a greater Average Dormancy value. For a number of reasons, the Average Dormancy of Bitcoin reaching a 13-year high is remarkable. First, the increase implies that more experienced, long-time Bitcoin holders are either selling or moving their holdings to new buyers.
This change may change how Bitcoin’s ownership is distributed, giving new users a bigger portion of the market. Second, historically, price volatility has increased often after surges in average dormancy. There could be more Bitcoin available on the market if long-term investors are really selling or moving their holdings, which might drive down prices.
Finally, the increasing Average Dormancy may also be a reflection of shifting Bitcoin holders’ mood towards the market. When deciding whether to sell or keep onto their assets, long-term investors may be influenced by market dynamics, legislative changes, or macroeconomic considerations.
All things considered, Ki Young Ju’s assessment on the fluctuating Bitcoin cap table highlights the dynamic character of the industry. The ownership dynamics of Bitcoin are changing significantly as older coins are sold or transferred to new owners. Participants in the market should keep a close eye on these events since they may have a significant impact on the mood of the market in the months to come.
