According to the latest on-chain data, Bitcoin has been witnessing an interesting change in its holder behavior, further intensifying the bullish speculation in the market.
For context, an unspent transaction output is an amount of a cryptocurrency (in this case, Bitcoin) that has been received by an address, but has not yet been used as input for a new transaction.
CryptoOnchain shared that this on-chain metric has been on a steady decline since January 2025. In the post, the crypto analyst pointed out that the UTXO count recently reached about 166.6 million, the lowest point seen since April 2024.
Since the Bitcoin UTXO reached a peak of approximately 187.5 million in January, it has witnessed a contraction of up to 11% — an event which CryptoOnchain interprets as a clear sign of network consolidation.
This “inverse relationship” is one that the online pundit explained to be a “classic hallmark of a maturing market.”
A decreased UTXO count could be a result of several underlying factors, including that long-term holders are choosing to hold their coins rather than selling for profit. Owing to this “hodling” behavior, it can be said that the market is starting to gain maturity.
Also, a lower UTXO count points to increasing network efficiency. As users aggregate smaller UTXOs into larger ones, they optimize the blockchain space, leading potentially to a less congested network.
As of this writing, the price of BTC stands at about $122,720, showing an over 1% growth in the past day.
