Bitcoin Store of Value Tool? Analysis and Results

Is Bitcoin Turning into a Store of Value?

One of the most curious topics in the cryptocurrency world recently has been 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 noted in his post on the X platform that, according to data from on-chain analytics firm Glassnode, Bitcoin's active addresses have decreased by 42.6% since 2021. This situation indicates a trend towards storing value rather than using it as a peer-to-peer cash.

Exchange Supply Rate and HODLing Trend

According to CryptoQuant's data, Bitcoin's exchange supply rate has shown a significant decline since January 2023. This reduction in exchange reserves indicates that investors prefer to hold (HODL) their assets long-term rather than trading them, which consequently means a decrease in liquid supply.

Average Coin Age and Inactivity

At the same time, Bitcoin's Average Coin Age has recorded an increase of 16% as of January 2023. This indicates that more investors are not moving their BTC unnecessarily and prefer to hold it for a longer period.

Performance in 2025 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 currently 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 by physical gold, such as Tether Gold (XAUT) and PAX Gold (PAXG), has achieved over 70% value gain this year.