Bitcoin: What this ‘gray-haired’ exchange movement could mean for BTC

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  • Bitcoin’s exchange inflows CDD val­ue wit­nessed a surge 
  • BTC exchange inflow stood low­er than BTC’s exchange outflow 

Bitcoin[BTC] exchange inflows Coin Days Destroyed (CDD) increased tremen­dous­ly as sev­er­al dor­mant address­es moved their coins. Accord­ing to Cryp­to­Quant ana­lyst, Tomáš Hančar, the recent move­ment sig­naled the high­est since BTC hit its low­est in 2021.

Due to the action, investors might expect that it was an indi­ca­tion of a sell-off. How­ev­er, the BTC price action didn’t seem to respond as it increased 0.43% in the last 24 hours.

Bitcoin dormant coins data

Source: Cryp­to­Quant

Read Bitcoin’s [BTC] Price Pre­dic­tion 2023–2024

Highs and balances

How­ev­er, the exchange inflow CDD was not the only met­ric inter­est­ed in reach­ing highs. Hančar, in oth­er parts of his post, men­tioned that the Spent Out­put Val­ue Bands hit its high­est since Octo­ber 2019. 

On assess­ing the data, Cryp­to­Quant showed that the exchange inflow val­ue bands were at a point where coin dis­tri­b­u­tion was extreme­ly high. This point indi­cat­ed that both retail investors and whales were dri­ving their BTC hold­ings into exchanges. Thus, the pos­si­bil­i­ty of price reac­tion due to sell­ing pres­sure was still imminent.

More­over, recent actions had shown that investors might no longer be at ease with the BTC price per­for­mance. This was evi­dent per the recent steps geared towards the vol­ume and SOPR. Fur­ther­more, San­ti­ment showed that the exchange flow was close to balanced. 

Accord­ing to data from the plat­form men­tioned above, the BTC exchange inflow at press time was 14,700. On the oth­er hand, the exchange out­flow val­ue was 16,100. With a dif­fer­ence of less than 2,000, the sta­tus indi­cat­ed that the num­ber of investors will­ing to sell were less than those accumulating. 

Hence, there was hope that BTC might not fall fur­ther per its price. Nev­er­the­less, the sta­tus also sig­ni­fied that the talks about the king coin already hit­ting the bot­tom could be valid.

Bitcoin exchange inflow and outflow

Source: San­ti­ment

In other ends…

Despite the exchange inflow from the dor­mant address­es, the nine­ty-day dor­mant cir­cu­la­tion was still at a low point. At press time, San­ti­ment showed that the val­ue stood at 5,729. How­ev­er,  it was note­wor­thy to men­tion that the cir­cu­la­tion spiked to 155,000 on 18 November. 

Now that wit­nessed a decrease, it meant that the num­ber of long-term BTC hold­ings held dur­ing the peri­od had remained in non-trans­ac­tion­al mode. Hence, the decline in vol­ume could con­tin­ue unless retail investors increase the rate of trans­act­ing the king coin.

Fur­ther­more, the Real­ized Mar­ket Cap Hold Waves increased to 3.63 as of this writ­ing. This indi­cat­ed that the real­ized val­ue of BTC trans­act­ed in the last sev­en days was worth a bet­ter price than the pre­vi­ous one. So, if increased fur­ther, more BTC could be in cir­cu­la­tion. There­fore, it could also lay an impact on the price action towards an upward movement.

Bitcoin dormant circulation and realized capitalization

Source: San­ti­ment


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