Dormant Bitcoins come to life amidst spot ETF frenzy
- The Coin Days Destroyed (CDD) metric witnessed a significant spike.
- Despite the entry of older coins, newer market participants were driving the market.
The greenlighting of spot Bitcoin [BTC] ETFs has set the stage for the next wave of mainstream adoption of the king coin, and with it, expectations of meteoric price gains.
The excitement has led to the movement of significantly old coins, which lay dormant for years.
Old Bitcoins come to life
According to AMBCrypto’s analysis of CryptoQuant’s data, more than 50,000 Bitcoins in the age band of 5–7 years had moved on the 16th of January.
For the uninitiated, Spent Output Age Bands bundles spent coins into categories depending on their age. In simpler words, it measures the age of coins that are moving on-chain.
This is used to understand whether market movements are influenced by long-term HODLers or newer market participants.
Additionally, when a considerable chunk of dormant coins move, they impact another important metric — Coin Days Destroyed (CDD).
As seen by AMBCrypto, the CDD witnessed a significant spike on the 16th of January, indicating that a large number of long-term holders had moved their coins.
The market is still being driven by diamond hands
AMBCrypto dug deeper and tried to observe the movement of other age bands as well. This analysis contradicted what we have observed till now.
Notably, more than 850,000 Bitcoins were moved by cohorts belonging to the short-term holder category. In fact, nearly 730,000 king coins alone were moved by traders who purchased these coins just a day before.
Hence, the writing on the wall was clear. Despite the entry of older coins, newer market participants continued to drive the market.
Sentiment for BTC turns negative
As of this writing, Bitcoin was exchanging hands at $42, 715, with a 24-hour drop of 0.18%, according to CoinMarketCap.
Notably, Bitcoin whale transactions have declined sharply since the spot ETFs were cleared, as per AMBCrypto’s examination of Santiment’s data.
Read Bitcoin’s [BTC] Price Prediction 2023-24
Investors’ mood on the coin also turned somewhat bearish owing to the price slump.
However, most analysts have predicted considerable capital infusion into the Bitcoin market in the long term. Hence, the king coin was expected to come out of the short-term difficulty with ease.