Bitcoin Long-Term Holders Selling Pressure
Recent on-chain data indicates that Bitcoin long-term holders have been increasing their selling activity, potentially impacting the bearish momentum of BTC in the market.
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Bitcoin Exchange Inflow CDD Spikes
- An analyst from CryptoQuant Quicktake revealed a significant increase in old cryptocurrency tokens being deposited on centralized exchanges.
- The Exchange Inflow Coin Days Destroyed (CDD) metric measures the coin days being reset through transactions into exchange wallets.
- CDD is crucial in tracking the movement of long-term holders’ coins into exchanges, indicating potential selling pressure.
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Impact of Selling Pressure
- Long-term holders often possess substantial coin days, and the spikes in Exchange Inflow CDD suggest a transfer of these coins to exchanges.
- Selling pressure from long-term holders could have contributed to BTC’s recent market crash as observed during previous price plunges.
- The latest spike in Exchange Inflow CDD coincides with BTC’s recovery attempts, indicating a possible hindrance from long-term holders’ selling activity.
- Future Outlook
- The behavior of Exchange Inflow CDD in the upcoming days will be crucial in determining whether additional selling pressure from long-term holders could impede Bitcoin’s recovery momentum.
Bitcoin Price Update
Currently, Bitcoin is trading at approximately $57,900, reflecting a 4% increase over the past week.
Hot Take ⚡️
As a crypto enthusiast, staying informed about on-chain data such as the Exchange Inflow CDD can provide valuable insights into market trends and potential price movements. Keep an eye on the behavior of long-term holders and their impact on Bitcoin’s performance in the coming days.
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