Mean Coin Age(MCA): MCA is the average age of UTxO (in days).
The key insight here is that Bitcoin’s upward movement is driven by the decisions of long-term holders, whose behavior is far from random. Long-term holders accumulate bitcoins during periods of discounted prices and hold through periods of volatility. Their actions create an ecosystem where bitcoin’s price appreciates gradually as coins are absorbed into strong hands.
BTC’s total supply is capped at 21 million bitcoins, and as bitcoins get held by long-term holders, they become less liquid in the market. This illiquidity creates a supply-demand imbalance, contributing to upward pressure on prices when demand increases. As fewer coins are available for trading, the price becomes more sensitive to buy-side pressure, leading to stronger upward price movements.
A sudden drop in MCA signals that long-term holders are moving their coins. This is not random behavior but a reaction to specific market conditions—whether it be profit-taking, fear of a market correction, or a shift in broader economic trends. The movement of these coins from long-term holders can drive short-term volatility and is a signal that market dynamics are changing.
Do not be fooled into thinking that random events—whether it’s Trump speaking about Bitcoin, Elon Musk tweeting, or BlackRock launching a Bitcoin ETF—are what drive Bitcoin’s price. This is nothing but foolishness. The truth lies within the data itself. The blockchain speaks clearly and transparently, and it is through this data that we can understand bitcoin’s true movement.
S.N architected Bitcoin to ensure that the financial information we need is open and accessible to all, so we can make informed decisions, not be misled by the stupidity of popular narratives. Let the data guide us, not the whims of outsiders who misunderstand what is truly happening.
Be informed and not misled by the noise of the media or the misunderstandings of those who fail to truly grasp the bl
Written by onchained
