Bitcoin CDD reaches a six-year high, has the market direction changed?
CryptoQuant analyst Maartunn pointed out that Bitcoin’s Coin Days Destroyed (CDD) 60-day moving average has exceeded a six-year high! This means that Bitcoin’s liquidity has increased recently, especially the transfer volume of “dormant” Bitcoin has increased significantly.
CDD, or "dormant days transfer amount", represents the sum of the holding period and amount of spent Bitcoins. Nowadays, the surge in CDD may mean that Bitcoins that have not moved for a long time are being transferred or traded, and the market’s liquidity has increased, which may affect the subsequent market fluctuations.
Does it herald the entry of institutional funds, or are large investors preparing for a large-scale sell-off? This is a major signal for the market!
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