Bitcoin Exchange Inflow CDD Has Spiked Up In Recent Days
As pointed out by an analyst in a CryptoQuant , a large amount of dormant coins seem to have moved recently.The relevant indicator here is “Coin Days Destroyed” (CDD). A coin day is the amount that 1 BTC accumulates after staying still in a single address for 1 day.
Looks like the value of the metric has been quite high in the last few days | Source:As you can see in the above graph, the Bitcoin exchange inflow CDD has spiked up to some pretty high values recently.
Also, it’s apparent from the graph that the latest levels of the indicator are the highest they have been since the spike back in July 2021, which occurred shortly before the bottom of the May-July mini-bear that year.
Large exchange inflows can have bearish effects on the price as investors may be depositing to these platforms for selling purposes. Inflows from the long-term holders especially, who hold onto their coins for long periods and accumulate large number of coin days, could have noticeable consequences on the market since they are the cohort that’s least likely to sell at any point. Following this recent spike in Bitcoin exchange inflow CDD, the crypto’s price has observed a decline below the $16k level, suggesting that it may be the selling from these whales holding old coins that’s behind the dip.BTC Price
At the the time of writing, Bitcoin’s price floats around $16k, down 4% in the last week.
The crypto's value seems to have rebounded back above $16k for now | Source:
Featured image from Thomas Lipke on Unsplash.com, charts from TradingView.com, CryptoQuant.com