On-chain data suggests Bitcoin long-term holders have started to capitulate recently as the sharp price drop causes panic in the market.
Bitcoin CDD Inflow Indicator Jumps Up, Showing Long-Term Holders Have Been Selling
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 excha ..
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