Bitcoin Enters Transition Phase as Dormant Coins Begin Moving
Bitcoin on-chain data points to a market reset despite rising CDD activity.Dormant Bitcoin is moving again, but low exchange inflows suggest limited selling pressure.Long-term holders remain confident as MVRV and NUPL signal a healthier market balance. Bitcoin on-chain data shows the market is more balanced than simply being in a “bull” or “bear” phase. While Coin Days Destroyed (CDD) has shown some major spikes in July, other indicators, such as NUPL and MVRV, suggest that the market is cooling down rather than experiencing a major sell-off. The data points to a healthy market reset, where long-term holders are becoming more active, but there are few signs of panic selling or large-scale profit-taking. Dormant Bitcoin Is Starting to Move Notably, CDD tracks the movement of older Bitcoin by measuring how long coins remained inactive before being spent. In July, CDD has been moving sharply up and down. It jumped to 32 million on July 2, dropped to 3 million two days later, rose again to 25 million on July 16, and continued fluctuating, most recently reaching around 9.8 million. These spikes indicate that long-term holders are moving some of their Bitcoin. Historically, elevated CDD has coincided with increased movement of older coins, sometimes during periods of profit-taking