Bitcoin Long-Term Holders Start Capitulating Amid Panic

On-chain data suggests Bitcoin long-term holders have started to capitulate recently as the sharp price drop causes panic in the market.

As pointed out by a CryptoQuant post, the recent price drop has pushed long-term holders towards selling their BTC.

“Coin days” are the number of days a Bitcoin has remained dormant for. An example: if 1 BTC doesn’t move for 5 days, it accumulates 5 coin days.

When such a coin would be transferred or moved, its coin days would be “destroyed” as the number will reset back to zero.

Related Reading | Bitcoin Slips Below $33k As Exchange Inflows Reach Highest Value Since July 2021

The “coin days destroyed” (CDD) metric naturally measures how many of these coin days are being destroyed in the entire market at any given time.

A modification of this indicator, called the “Bitcoin exchange inflow CDD,” tells us about only those coin days that were destroyed by a transfer to exchanges.

A high value of the inflow CDD generally suggests that long-term holders (who accumulate a large number of coin days) are moving their coins to exchanges.

Investors usually transfer their Bitcoin to exchanges for selling purposes, so LTHs transferring a large number of their coins can be bearish for the price of the crypto.

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