Darkfost2025-12-23

Declining CDD signals reduced LTH selling pressure

We are now more than a month past the large BTC move from Coinbase. As a result, all averaged data is gradually returning to normal levels. Looking at Coin Days Destroyed (CDD), we can clearly observe a sharp decline following that event. What’s particularly interesting is that this decrease has reached a level well below the previous spike. Beyond the Coinbase-related move, this suggests that LTH activity is cooling down. BTC movements are becoming less frequent, implying a reduction in selling pressure from these participants. For those less familiar with this indicator, CDD simply measures the number of holding days of a UTXO before it is spent. When long-held BTC start moving, it is often in preparation for selling. This decline in CDD is a positive signal, as LTHs still represent the largest potential source of selling pressure, given they hold the biggest share of the total supply.A reduction in LTH selling pressure helps relieve the market and could contribute to the formation of a bottom if this trend persists.