On-chain data shows Bitcoin long-term holders have ramped up their selling recently, something that could lead to further plunge in the crypto\u2019s price.<\/p>\n
As pointed out by an analyst in a CryptoQuant post<\/a>, the current rise in the CDD is the largest since 6th October.<\/p>\n A \u201cCoin Day\u201d is the quantity that 1 BTC accumulates after staying still for 1 day in a single address. If a coin that has amassed some number of Coin Days finally moves to another wallet, its Coin Days counter resets, and the Coin Days are said to be \u201cdestroyed.\u201d<\/p>\n The \u201cCoin Days Destroyed<\/a>\u201d (CDD) metric keeps note of the total number of such Coin Days being destroyed throughout the network on any given day.<\/p>\n Another version of this indicator is the \u201cexchange inflow<\/a> CDD,\u201d which measures only those Coin Days that were reset because of transactions to centralized exchanges.<\/p>\n Now, here is a chart that shows the trend in the Bitcoin exchange inflow CDD over the past month:<\/p>\n\n The value of the metric seems to have spiked up during the last day or so | Source: CryptoQuant<\/a><\/p>\n As you can see in the above graph, the Bitcoin exchange inflow CDD has shown a sharp rise in its value recently.<\/p>\n There is a cohort in the BTC market called the \u201clong-term holder<\/a>\u201d (LTH) group, which includes all investors who hold onto their coins for long periods without moving them.<\/p>\n Related Reading: Bitcoin Capitulation Deepens As aSOPR Metric Plunges To Dec 2018 Lows<\/a><\/p>\n Because of the dormancy of their coins, thes LTHs accumulate a large numbers of Coin Days. As such, whenever these holders do move their coins, the CDD usually spikes up due to the scale of Coin Days involved.<\/p>\n The current spike in the Bitcoin exchange inflow CDD thus suggests that some LTHs have deposited their coins to exchange wallets.<\/p>\n As the exchanges in question are spot platforms, it\u2019s possible that this movement of coins was made for selling purposes.<\/p>\n From the graph, it\u2019s apparent that both the previous big spikes in the indicator were followed by declines in the price of Bitcoin.<\/p>\n If the latest surge was also because of LTHs preparing to dump their coins, then the crypto is likely to observe bearish trend this time as well.<\/p>\n At the time of writing, Bitcoin\u2019s price floats around $16.4k, down 2% in the last week. Over the past month, the crypto has lost 15% in value.<\/p>\n\n Looks like the price of the coin has been back to moving sideways in the last few days | Source: BTCUSD on TradingView<\/a> <\/p>\n On-chain data shows Bitcoin long-term holders have ramped up their selling recently, something that could lead to further plunge in the crypto\u2019s price.<\/p>\n As pointed out by an analyst in a CryptoQuant post<\/a>, the current rise in the CDD is the largest since 6th October.<\/p>\n A \u201cCoin Day\u201d is the quantity that 1 BTC accumulates after staying still for 1 day in a single address. If a coin that has amassed some number of Coin Days finally moves to another wallet, its Coin Days counter resets, and the Coin Days are said to be \u201cdestroyed.\u201d<\/p>\n The \u201cCoin Days Destroyed<\/a>\u201d (CDD) metric keeps note of the total number of such Coin Days being destroyed throughout the network on any given day.<\/p>\n Another version of this indicator is the \u201cexchange inflow<\/a> CDD,\u201d which measures only those Coin Days that were reset because of transactions to centralized exchanges.<\/p>\n Now, here is a chart that shows the trend in the Bitcoin exchange inflow CDD over the past month:<\/p>\n The value of the metric seems to have spiked up during the last day or so | Source: CryptoQuant<\/a><\/p>\n As you can see in the above graph, the Bitcoin exchange inflow CDD has shown a sharp rise in its value recently.<\/p>\n There is a cohort in the BTC market called the \u201clong-term holder<\/a>\u201d (LTH) group, which includes all investors who hold onto their coins for long periods without moving them.<\/p>\nBTC Price<\/h2>\n
\nFeatured image from Zden\u011bk Mach\u00e1\u010dek on Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/p>","protected":false},"excerpt":{"rendered":"Bitcoin Exchange Inflow CDD Has Spiked Up Over The Last Day<\/h2>\n