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Bitcoinist 2025-12-24 20:00:48

Bitcoin Coin Days Destroyed Plunge After Massive Coinbase BTC Transfer

Bitcoin ’s current pullback continues to reflect on multiple major on-chain metrics, reinforcing the volatility across the market. With selling pressure still present among retail and institutional investors, the BTC Coin Days Destroyed (CDD) metric has experienced a sharp decline to levels that could shape the market’s direction. Major Coinbase Transfer Triggers Bitcoin CCD Drop While ongoing volatility has increased within the broader cryptocurrency sector, the Bitcoin market appears to be entering a pivotal phase. This new phase, which goes beyond routine volatility or short-term price noise, is largely driven by the BTC Coin Days Destroyed, an indicator that simply measures the number of holding days of a UTXO before it is spent, after undergoing a notable drop. Beneath the surface, key structural indicators point to a significant shift occurring, characterized by evolving on-chain patterns, shifting liquidity dynamics, and altered investor behavior. This is a crucial turning point in the current cycle since it has the potential to redefine the market’s next major direction. In the report shared on X by Darkfost, a market expert and author at CryptoQuant, it shows that the drop in the BTC CDD metric emerged following a large BTC move from Coinbase over a month ago. As a result, all leverage data are now slowly returning to normal levels. According to the expert, the most interesting aspect of the development is that this decline has reached a level well below the previous spike. In addition to the Coinbase-related action , this implies a sign of slowdown in Bitcoin long-term holders’ activity. It is worth noting that when BTC held in the long term begins to move, it is usually in preparation for a sell-off. Although it may sound bad, this drop in CDD is a positive signal. This is because long-term holders continue to be the biggest possible source of selling pressure as they account for the largest share of the total supply. However, a decrease in long-term holder selling pressure aids in relieving the market and may add to the formation of a bottom if this trend persists. When Is The Time To Buy The Crypto Asset? After weeks of waning price action, Joao Wedson, the founder of Alphractal, has o ffered insights into when to purchase Bitcoin using the Financial Stress Index (FSI). Historically, this key metric has acted as a reliable signal for when to buy BTC, making it one of the most closely watched indicators. Presently, the FSI metric has flipped into a positive territory. Wedson highlighted that each time this happens, good opportunities to acquire more BTC have emerged. However, this trend has not yet unfolded. The indicator, which uses a wide range of factors, including volatility, spreads, and risk premiums, to gauge systemic stress in international financial markets , was created by the Office of Financial Research. Wedson stated that these kinds of metrics are uncommon in the macroeconomic environment, which is characterized by substantial data delays and sluggish decision-making.

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