BlockBeats news, July 24, CryptoQuant analyst Axel Adler Jr stated that the current market shows an unusually high monthly Coin Days Destroyed (CDD) and annual CDD ratio (0.25) when Bitcoin prices are in the range of $106,000 to $118,000. This value is close to the historical highs of 2014 and the levels during the 2019 correction.
This indicates that long-term holders—investors who have not moved their Bitcoins for many years—are significantly transferring their holdings to the market. Such a surge in CDD typically means that experienced players are actively distributing their chips.
Meanwhile, institutional demand for funds and inflows into Bitcoin ETFs remain high, so this round of chip distribution is unlikely to end the current uptrend, at most it may slightly slow down its upward pace.
Note: CDD stands for Coin Days Destroyed, which assumes that each Bitcoin accumulates '1 coin day' every day. Holding 10 Bitcoins for 10 days means you have 100 coin days, and when these Bitcoins are spent or transferred, the corresponding 100 coin days are destroyed.
