Bitcoin Storage Tool or Not? Analysis and Results

Is Bitcoin Turning into a Store of Value?

One of the most debated topics in the recent cryptocurrency world 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.

Decrease in Active Addresses

Martinez noted in a post on the X platform that the number of active addresses for Bitcoin has decreased by 42.6% since 2021, according to data from blockchain analytics firm Glassnode. This situation indicates a trend toward storing value rather than using cash for peer-to-peer transactions.

Exchange Supply Ratio and HODLing Trend

According to data from CryptoQuant, Bitcoin’s exchange supply ratio has shown a significant decline since January 2023. This decrease in exchange reserves reveals that investors prefer to hold their assets long-term (HODLing) rather than trading, which means 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 suggests that more investors are not unnecessarily moving their BTC and prefer to hold it for an extended period.

2025 Performance and Conclusion

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 to be real wealth protectors. Cryptocurrencies backed by physical gold, such as Tether Gold (XAUT) and PAX Gold (PAXG), have provided over 70% value gains this year.