Cointelegraph Consulting: Data shows Bitcoin hodlers becoming more active

The latest findings by Santiment, published in Cointelegraph Consulting’s biweekly newsletter, show that the Bitcoin Age Consumed experienced a large uptick with the recent price increase — a sign that tokens previously dormant are on the move. 

The Bitcoin Age Consumed metric is found by multiplying the amount of tokens changing addresses on a certain date by the time since they last moved. It is an indicator of volatility, which often precedes a directional price shift. Over 79,955 BTC that were dormant for at least a year changed addresses on Friday, Oct. 23, pointing to a strong paradigm shift among veteran Bitcoin (BTC) traders.

Bitcoin’s Mean Dollar Invested Age, or MDIA, has also experienced a marked downtrend over the past seven days, implying short-term distribution and potential profit-taking by some long-term BTC investors. Bitcoin’s MDIA has recorded similar drop-offs near its local price tops in February and September suggesting an increased risk of price volatility up ahead.

The average sentiment toward Bitcoin has taken a complete u-turn amid its latest push past $13,000, shifting from predominantly bearish to overwhelmingly bullish over the previous 10 days. Last Friday, Bitcoin-related sentiment was the highest it’s been since May 12, the date of Bitcoin’s latest “halving.”