What’s Driving This Trend?
Data from the Bitcoin blockchain shows that the number of “Coin Days Destroyed” (CDD) has reached an all-time high. This metric measures the number of days that Bitcoin has been held without being moved.
Spike in CDD
The recent spike in CDD is larger than the one observed during the November 2018 market crash. This suggests that a significant number of long-term Bitcoin holders (LTHs) have recently moved their coins.
Possible Reasons for the Spike
Typically, spikes in CDD are associated with LTHs selling their coins. However, in this case, the spike is likely due to the Mt. Gox cryptocurrency exchange making payments to its creditors.
Mt. Gox Transactions
Mt. Gox had been holding a large amount of Bitcoin for a long time. As a result, these coins had accumulated a large number of coin days. When Mt. Gox moved these coins, it caused a record-high number of coin days to be destroyed.
Bitcoin Price
At the time of writing, Bitcoin is trading at around $67,500, down 4% over the past week.
