Bitcoin Exchange Inflow CDD Has Spiked Recently
As explained by an analyst in a CryptoQuant Quicktake , investors have been making deposits to spot exchanges recently. There are two relevant indicators here: the “exchange inflow” and the “exchange reserve.”
The former of these keeps track of the total amount of Bitcoin that the holders are transferring to centralized exchanges, while the latter one measures the total amount sitting in the wallets of these platforms.The analyst has also chosen another modifier on the exchange inflow: the “Coin Days Destroyed” (CDD). In simple terms, what the CDD checks for is the activity of dormant coins in the market.
Looks like both of these metrics have gone up in recent days | Source:From the first graph, it’s visible that the Bitcoin exchange inflow CDD has registered a sharp spike recently. This would suggest that a potentially large number of dormant coins have been moved into these platforms. Usually, the CDD having large values like these can be a sign that the “long-term holders” (LTHs) are on the move. The LTHs (defined as holders carrying their coins since at least six months ago) are the most resolute bunch in the market, so their depositing to exchanges can be something to watch for, as it implies that the market has made even these diamond hands waver. As is visible from the second chart, the exchange reserve has also gone up alongside this spike in the exchange inflow CDD, suggesting that there haven’t been enough withdrawals to make up for these inflows. It now remains to be seen what effect these possible selling moves from the LTHs may have on the Bitcoin price in the coming days.
BTC Price
Bitcoin has continued its stagnant price action recently as its price is still trading around the $26,400 mark.BTC has continued to display boring price action in the last few days | Source: