Coin Days Destroyed is a metric that measures the volume of Bitcoin moved in a day, adjusted for how long it has been inactive. Specifically, it multiplies the amount of Bitcoin transacted by the number of days it has been held without movement. This approach emphasizes the significance of transactions involving long-held or "aged" UTXOs (Unspent Transaction Outputs) and the total Bitcoin involved.
The recent high in Coin Days Destroyed, with a 60-day moving average, stands at 23.2 million. It shows that substantial movement of Bitcoin that had been dormant for a long period, similar to the patterns observed during the bullish phases of 2017 and 2021.
This pattern indicates that during the bullish phase, there is a distribution of older coins. In historical contexts, it may take up to 5 months for Bitcoin to reach its peak. Until then, it's advisable to appreciate the current trend while being mindful of the distribution among long-term holders.
Written by maartunn