As Bitcoin Reclaims $100,000, Warning Signs Emerge from Long-Term Investors
Before yesterday’s plunge, Bitcoin’s recent rally pushed it to a new all-time high of $108,000, marking another major milestone in its upward trajectory.
However, according to the latest news analyzethis significant price spike comes with signs of underlying market volatility as long-term holders begin to show selling activity.
Attention has turned to the coin days to destruction (CDD) metric, a key tool for assessing the behavior of long-term Bitcoin holders.
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What signals are long-term holders sending now?
The Binary CDD metric tracks the activity of long-term holders by measuring the number of “coin days” burned relative to the total supply. When this indicator spikes, it usually signals increased selling pressure from long-term investors.
According to CryptoQuant analyst ShayanBTC, the binary CDD indicator has grown sharply recently, in line with Bitcoin’s new high price.
Historically, such spikes in this indicator have been a precursor to market corrections, suggesting that these holders are taking advantage of current price levels to reduce their risk exposure.
Shayan added that the actions of long-term holders can often serve as a barometer of broader market sentiment. The recent surge in the binary CDD indicator suggests that these holders may view the peak above $108,000 as a strategic exit point.
If this selling pressure intensifies, it could lead to increased market volatility May trigger price adjustments.
Bitcoin Market Outlook
Bitcoin has been on a roller coaster ride over the past day. In particular, the price of Bitcoin saw a sharp decline following yesterday’s Federal Open Market Committee (FOMC) news results and the speech of US Federal Reserve Chairman Jerome Powell Dropped to as low as $98,000.
However, the latest price action is very interesting as BTC rebounds. In the early hours of Thursday morning, Bitcoin prices were at $100,000 recovered Transactions amounted to over $105,000.
Currently, as of this writing, Bitcoin price has retreated to $100,718, down 3.5% from the past day and approximately 6.6% from its all-time high (ATH).
Meanwhile, another CryptoQuant analyst Onatt added to Shayan’s narrative, Highlight Other market indicators suggest potential turmoil.
The Coinbase Premium Index, which tracks the price difference between Coinbase and other exchanges, is currently in negative territory, indicating increasing selling pressure.
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Additionally, there has been a sudden spike in adjusted spend-output margin (aSOPR), a measure of profit-taking behavior.
Onatt said these signals collectively highlight the need for continued institutional demand, particularly through Bitcoin exchange-traded funds (ETFs), to stabilize market conditions.
Featured image created using DALL-E, chart from TradingView
