Bitcoin’s price range between $106,000 and $118,000 has triggered a notable increase in monthly Coin Days Destroyed (CDD) and an annual CDD ratio of 0.25, according to CryptoQuant analyst Axel Adler Jr. This metric, nearing levels last seen during the 2014 peak and the 2019 market correction, signals significant activity from long-term holders who have retained their assets for several years. The surge in CDD reflects a strategic redistribution of Bitcoin by seasoned investors, suggesting a deliberate market movement rather than impulsive selling.
Despite this heightened token distribution, the ongoing robust institutional demand and substantial inflows into Bitcoin ETFs indicate that the current bullish trend is likely to persist. While the increased supply from long-term holders might temper the pace of price appreciation, it does not appear to threaten the overall upward momentum in the near term.
For clarity, Coin Days Destroyed quantifies the economic activity of Bitcoin by measuring the age of coins when they are spent, with one coin held for one day equating to one coin day. This metric provides valuable insight into market dynamics by highlighting the behavior of long-term holders versus active traders.