Coin Days Destroyed (Supply Adjusted)

Supply Adjusted Coin Days Destroyed (CDD) is a variation of the Coin Days Destroyed metric. This adjusted version divides CDD by the total number of bitcoins issued to the market, providing a more accurate representation of the relative amount of coins being sold by long-term holders over time.

Interpretation

Supply Adjusted CDD takes the number of coin days destroyed and normalizes it against Bitcoin's total supply. This helps reveal market trends where long-term holders, considered more informed or experienced investors, move their coins. Large spikes in adjusted CDD can indicate significant selling activity from these holders, which can often coincide with major market events or price changes.

Key Insights

  • Supply Adjusted CDD shows movement of long-held coins relative to total supply, helping identify changes in experienced Bitcoin investor behavior
  • The 90DMA of adjusted CDD smooths daily fluctuations, making it easier to detect trends in long-term holder activity
  • Spikes in adjusted CDD can indicate key market moments when large holders are likely selling or moving their assets

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