Bitcoin spending copies history as metric flags '1st stage bull market'
Bitcoin (BTC) long-term holders are coming back to life as BTC price increases, the latest analysis confirms.
In a tweet on July 13, Philip Swift, creator of on-chain data resource Look Into Bitcoin, revealed classic bull market behavior among “older” BTC investors.
Bitcoin’s current price cycle may be dividing opinion when it comes to how high BTC price could go, but one thing is for sure: hodler behavior is the same.
Thanks to BTC/USD more than doubling in 2023, on-chain spending velocity is up, indicative of profit-taking activity.
Uploading a chart of the Value Days Destroyed (VDD) Multiple, Swift suggested that the current cycle barely differs from all previous ones in this regard.
“Increased onchain spending volume showing where we are in the cycle right now,” part of accompanying Twitter commentary stated.
VDD is based on the extant Coin Days Destroyed (CDD) metric, which measures periods of inactivity each time an amount of BTC moves on-chain. It takes CDD data and factors in the current BTC price, and its multiple then compares the 30-day result with the 365-day average.
“It is able to highlight when older coins begin to rapidly enter the market to be sold,” Swift explains in an instructional guide on Look Into Bitcoin.
The VDD Multiple currently measures 1.32, narrowly behind its 2023 peak of 1.37 seen in April. For Swift, this is a telltale sign of a “1st stage bull market.”
Reacting, Checkmate, lead on-chain analyst at data firm Glassnode, called the findings “remarkable.”
“It is remarkable how consistent the cycles are. Humans reacting the same, given similar stimulus,” he responded.
Glassnode data meanwhile underscores how tempting it might be for various hodler classes to cash out at current prices.
Related: Bitco
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