Value Days Destroyed

The Value Days Destroyed (VDD) Multiple aims to identify when Bitcoin may be approaching a market top, signaling a potential cycle high. It uses Coin Days Destroyed (CDD) as a proxy for spending velocity and multiplies it by Bitcoin price to allow better comparisons of spending activity over time.

Interpretation

The VDD Multiple compares short-term spending activity to a long-term historical average by dividing a 30-day average of VDD by a 365-day average. This indicator is useful for detecting when older, long-held coins are moving into circulation, typically indicating long-term holders may be selling as the market accelerates.

Key Insights

  • The VDD Multiple highlights when a large number of older coins begin entering the market for sale, typically signaling the bull market could be approaching its end
  • Periods when the VDD Multiple reaches extreme levels (such as 2.9 or above) have historically coincided with market tops and the end of major bull runs
  • The indicator reflects when spending activity is significantly above historical norms, often due to long-term holders taking profits as prices rise rapidly

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    Value Days Destroyed - Apollo Analytics | Apollo Analytic