The current on-chain statistics show that Bitcoin’s long-term holders have remained unwavering.
Glassnode, an on-chain analytics service, reports that mature coins exhibit minimal fluctuation despite the current asset price volatility. To grasp the meaning of “coin days,” it is necessary first to examine the “Coin Days Destroyed” (CDD) indication.
When one bitcoin (BTC) sits idle on the blockchain for 24 hours, it accrues a coin day. A coin’s coin days counter is automatically reset to zero if a coin inactive for a certain period is eventually moved on the network.
However, a variant of the CDD known as the “binary CDD” is of importance rather than the original CDD. This statistic evaluates the present CDD against the general trend.
As its name suggests, this indicator has just two possible values, zero and one. If it’s less than 0, the current CDD is below average, and if it’s more than 1, the current CDD is above average.
The 7-day simple moving average Bitcoin binary CDD’s trajectory over the last several years is seen on this chart.
The accompanying graph shows that the 7-day simple moving average Bitcoin binary CDD has been relatively low for some time. This suggests few coins of very advanced age are in circulation as of late.
As a rule, increased CDD levels indicate movement on the part of long-term holders (LTHs). All investors holding their coins for at least 155 days are part of the LTH group.
Due to their extended periods of inactivity, these investors amass vast numbers of coin days. As a result, the CDD rises sharply anytime these investors engage in substantial activity, as their enormous stockpiles of coin days are reset.
The 7-day simple moving average Bitcoin binary CDD rose during the bull market in the first half of 2021, as seen in the accompanying bar chart, indicating that the LTHs engaged in profit-taking then.
However, the Bitcoin LTHs have not been moved to action by the current surge or the volatility caused by events like the SEC accusations against Binance and Coinbase.
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