Coin Age Analysis

Definition ∞ Coin age analysis is a method for examining the holding periods of cryptocurrencies on a blockchain. This technique assesses how long coins have remained dormant in wallets, providing insights into investor behavior and market sentiment. It helps differentiate between short-term traders and long-term holders by tracking the movement of older versus newer coins. Significant movements of older coins can indicate major market shifts or distribution events.
Context ∞ In crypto news, coin age analysis is frequently cited to gauge the conviction of long-term holders and predict potential supply shocks or selling pressure. A key discussion point involves interpreting large movements of old coins, which could signal either a capitulation by long-term holders or a strategic redistribution. This analysis offers valuable context for understanding market cycle phases.