Bitcoin News

Story: Bitcoin’s Dormant Coins Are on the Move Again as Institutions Absorb the Pressure

By Pankaj K

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Dormant Bitcoin Begins to Circulate. Recent on-chain data suggests that long-term holders (LTHs) are starting to move their BTC after…

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Historical Echoes of Prior Cycles. This CDD surge is particularly significant due to its similarity with past cycles.

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Institutional Appetite Still Strong. Despite the increased selling pressure from long-term Bitcoin holders, institutional demand…

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What Does This Mean for Bitcoin's Price?. Bitcoin is currently consolidating within the $115,000 to $120,000 range after failing to break…

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Final Thoughts. Bitcoin’s current phase is a classic case of transition.

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Bitcoin’s price action is once again catching the attention of traders, not because of a sudden move, but due to subtle yet important on-chain shifts.

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On July 24, CryptoQuant analyst Axel Adler reported that the Monthly Coin Days Destroyed (CDD) to Yearly CDD ratio jumped to 0.25.

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The increase in the CDD ratio signals that experienced holders are actively distributing their BTC, potentially viewing the current $117,000–$120,000 range as a profit-taking…

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This CDD surge is particularly significant due to its similarity with past cycles. In 2014, Bitcoin’s price collapsed from $1,000 to just over $100 following the Mt. Gox collapse.

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Although today’s market dynamics are different—most notably due to institutional involvement—these historical analogies offer a warning: heavy long-term holder distribution often…

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Supporting this trend, Checkonchain data shows that Bitcoin’s Holder Net Position Change has been negative for several days, with a recent low of -134,700 BTC.

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Despite the increased selling pressure from long-term Bitcoin holders, institutional demand continues to counterbalance the outflows.

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BlackRock’s iShares Bitcoin Trust (IBIT) leads with over $57 billion in inflows, while Fidelity’s Bitcoin Fund (FBTC) holds over $12 billion.

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This strong demand from asset managers and institutional investors suggests that large buyers are willing to absorb the coins being sold, limiting the potential downside in price.

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Bitcoin is currently consolidating within the $115,000 to $120,000 range after failing to break above its previous all-time high of $123,000.

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