UTXO_CoinAge_Mean_STH

Tech spec

Brief Description: The average duration, in days, that unspent transaction outputs (UTXOs) have remained unspent.

UTXO_CoinAge_Mean_STH refers to the average duration that unspent transaction outputs (UTXOs) in the Bitcoin network have remained unspent. This metric quantifies the length of time, in days, that the average UTXO has not been moved, offering insights into the collective behavior of coin holders. Understanding this average lifespan can provide valuable context when analyzing the Bitcoin market and blockchain activity.

Interpretation The UTXO_CoinAge_Mean_STH can be interpreted as an indicator of investor sentiment and behavior. A higher UTXO_CoinAge_Mean_STH suggests a tendency among Bitcoin holders to retain their coins for more extended periods, which could imply a bullish sentiment or a lack of interest in selling at current prices. Conversely, a decreasing UTXO_CoinAge_Mean_STH may indicate increased movement of UTXOs, suggesting that holders are more inclined to sell or use their Bitcoin, potentially pointing to a bearish market sentiment or a response to price volatility.

Advanced Explanation The UTXO_CoinAge_Mean_STH is a metric that aggregates the age of all UTXOs by calculating their lifespan from the moment they were created until the current or specified time. It's an average calculated by taking the sum of the age of each UTXO and dividing it by the total number of UTXOs.

It is important to note that this metric represents the average age (not median), and it is not influenced by the bitcoin amount of the UTXO (all UTXOs are weighte equal). Because the age of UTXO are not normally distributed due to vast numbers of dust value, ordinals etc, the median version is usually better to display the typical UTXO.