The below is from a recent edition of the Deep Dive, Bitcoin Magazine’s premium markets newsletter.
The spent volume age bands for coins older than three months helps to paint a clear picture of what happened at the previous all-time high.
This can indicate strategic profit taking in the market as a one-off type event, or as a potential new increasing trend of more older coins being spent as price rises.
Even with the latest increase to spent volume, the older coin activity is still only 4% of supply being spent, which didn’t have much downward impact on price as it recently broke new highs.
As older coins are spent, they are reset and become younger coins again.
Historically, the percentage of supply less than three months old will peak with all-time highs during bull market cycle runs.
Like the bull market cycles in the past, we would expect to see this share of supply rise as olders coins are distributed to new market players.