UTXO Age Bands

Definition ∞ UTXO Age Bands categorize unspent transaction outputs (UTXOs) by the length of time they have remained unmoved. This on-chain analysis tool groups Bitcoin UTXOs into various time cohorts, such as 1-3 months, 6-12 months, or over 5 years, to visualize the holding behavior of different investor groups. It helps distinguish between short-term traders and long-term holders, providing insights into market conviction and potential selling pressure. Older UTXOs moving often signal significant market events.
Context ∞ News reports frequently use UTXO Age Bands to analyze Bitcoin market cycles, identify accumulation or distribution phases, and assess investor sentiment. A rise in older UTXOs being spent can indicate profit taking by long-term holders, while an increase in younger UTXOs suggests active trading. This metric provides valuable context for understanding the underlying behavior of Bitcoin holders.