Bitcoin Store of Value Tool? Analysis and Results

Is Bitcoin Turning into a Store of Value?

One of the most discussed topics in the world of cryptocurrencies recently is how Bitcoin (BTC) has evolved into a store of value. Popular crypto analyst Ali Martinez suggests that Bitcoin is shifting from a peer-to-peer currency to a store of value. This claim is supported by a sharp decline in network activity.

Decline in Active Addresses

Martinez stated in his post on platform X that, according to data from the on-chain analytics firm Glassnode, there has been a 42.6% decrease in Bitcoin’s active addresses since 2021. This situation indicates a trend towards storing value rather than using it for peer-to-peer cash transactions.

Exchange Supply Ratio and HODLing Trend

Data from CryptoQuant shows that Bitcoin’s exchange supply ratio has significantly decreased since January 2023. This decline in exchange reserves indicates that investors prefer long-term holding (HODLing) over trading, resulting in a reduction in liquid supply.

Average Coin Age and Inactivity

Additionally, Bitcoin’s Average Coin Age recorded a 16% increase as of January 2023. This shows that more investors are not moving their BTC unnecessarily and prefer to hold it for an extended period.

2025 Performance and Conclusions

Despite this, Bitcoin’s performance in 2025 has not fully met expectations as a reliable store of value. In the last quarter of the year, the leading cryptocurrency experienced a significant loss in value and is trading 4.23% below its value at the beginning of the year.

In contrast, precious metals like gold and silver have proven to be true wealth preservers. Cryptocurrency-backed assets like Tether Gold (XAUT) and PAX Gold (PAXG) have provided over 70% value gains this year.