Bitcoin remains under pressure, with its price dropping below $85,000. At the time of writing, Bitcoin is valued at $84,397, representing a 2.4% decline in the past 24 hours and a significant 13.7% drop over the past week.
These market conditions have sparked a range of analyses, with various on-chain indicators offering insights into current investor behavior.
One of the key indicators highlighted recently by a CryptoQuant analyst known as Banker is the Coin Days Destroyed (CDD) metric. According to Banker, the Coin Days Destroyed (CDD) metrica measure of economic activity weighted by the age of coins being movedhas seen a substantial surge.
The 60-day CDD indicator, which aggregates these destroyed coin days over two months, indicates that coins held for extended periods are now being spent at a much higher rate.
This trend, observed from November 2024 to February 2025, suggests that long-term holders are increasingly active in the market, potentially signaling a pivotal moment for Bitcoin.
Banker explains that elevated CDD values often correlate with significant market events. In this case, the sustained uptick in long-term holder activity may hint at profit-taking, asset reallocation, or anticipation of heightened market volatility.
While it is not unusual for Bitcoinlong-term holders to move coins during periods of major price shifts, the current trend represents the strongest CDD signal since 2021. Historically, such patterns have preceded market turning points, making this metric a critical one to watch.
Notably, the Coin Days Destroyed metric differs from typical transaction volume as it gives more weight to coins that have remained untouched for longer periods. Each unspent day accumulates coin days, and when the holder finally moves those coins, these days are destroyed.
The 60-day CDD effectively tracks long-term holder sentiment by revealing when these seasoned participants decide to act. As earlier mentioned, a consistent increase in CDD often reflects a growing willingness among long-term holders to take profits or reposition their portfoliosmoves that can influence broader market sentiment.
Banker points out that this uptick may signal more than just a Bitcoin price correction. With long-term holders moving their coins at a steady pace, the market could be heading toward a “healthier reset.”
This kind of activity often sets the stage for new entrants to step in, potentially stabilizing the market and creating opportunities for fresh capital inflows. However, the implications depend heavily on the broader market context, including macroeconomic factors and investor confidence.
Featured image created with DALL-E, Chart from TradingView