Glassnode Studio Coin Days Destroyed Indicator
Popular Crypto Trader, The Crypto Dog, tweeted the following:
I’ve been playing with Glassnode’s tool CDD, Coin Days Destroyed. It’s neat, illustrates when long term holders start to move their $BTC. Blockchain analysis let’s you see things the raw chart doesn’t. I’ll show you, let’s take a walk down memory lane…
June 2011. I was still new to crypto, or rather, Bitcoin, as we called it back then. I was a hobbyist, just a nerd playing around on my new computer I’d been saving up money from many summers of work to build. I finally was ready to sell some of my hard earned GPU-mined BTC.
I hopped onto MtGox, day one. At that time the price had been soaring, the highest numbers anyone had ever seen. As you can see from the data, I wasn’t the only one who had that same idea - cash out and get it while the getting is good. This was the first major CDD spike.
I had some foresight, sure, but no one could have predicted what happened next. That very same day I logged in to trade BTC for the first time something terrible happened. Jed McCaleb’s Mt.Gox account was hacked and the perpetrators flash crashed Bitcoin to 1 cent. I panic sold.
How much was that CDD spike from the high prices, or the flash crash FUD? I don’t know. Let’s fastforward to 2013. The first rally into the three digits, and then later $1k+, the little BTC that could! Again, high prices led to holders moving their coin to sell, no surprise.
“Another top, another CDD spike.” The theme is fairly straightforward, but wait.. Another spike in the spring of 2014, and this time price was not the leading factor? At that time Mt.Gox was falling apart. By February, trading was suspended. Those coins had to move somewhere…
The next major CDD spike is no less unusual, uncorrelated to a market top. So what happened July 31? Many will remember this as one of the wildest times in Bitcoin history. We rode BTC all the way up to $3,000 - what a height after having crashed to $900 just two months prior!
This time the CDD spike had little to do with Bitcoin price action, and instead was a direct result of the BCH hardfork, as everyone across the entire ecosystem SCRAMBLED to move their coin. This was really a crazy experience, as no one knew what would happen. The price action prior to the event was a roller coaster of emotions. Plenty of fear uncertainty and doubt! I always find it so interesting seeing this history manifested in the data.
Finally, last great CDD spike in history. An absolute massive amount of coins were moved, and this time at the very bottom of the market. 🤔 Any guess what might have happened then? Who, or what coin was moving? I’ll give you a hint - it rhymes with loin case mold porridge.
