"Is Bitcoin a Store of Value? Analysis and Conclusions"

Is Bitcoin Turning into a Store of Value?

One of the most discussed topics in the cryptocurrency world 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 noted in his post on the X platform that, based on 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 toward 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 decrease in exchange reserves suggests that investors prefer to hold their assets long-term (HODLing) rather than trading, which in turn means a reduction in liquid supply.

Average Coin Age and Inactivity

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

2025 Performance and Conclusions

Nevertheless, 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 of 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 themselves to be true wealth protectors. Cryptocurrency assets backed by physical gold, such as Tether Gold (XAUT) and PAX Gold (PAXG), have achieved over 70% value gains this year.