- The Coin Days Destroyed (CDD) metric witnessed a significant spike.
- Despite the arrival of older coins, newer market participants were driving the market.
The green light for spot Bitcoin [BTC] ETFs have paved the way for the next wave of mainstream adoption of the King Coin, and with it expectations of rapid price gains.
The excitement has led to the movement of significantly old coins that have lain dormant for years.
Old Bitcoins come to life
According to AMBCrypto’s analysis of CryptoQuant data, more than 50,000 Bitcoins in the 5 to 7 age range had been moved as of January 16.
Source: CryptoQuant
For the uninitiated, Spend Output Age Bands groups used coins into categories depending on their age. In simpler words, it measures the age of coins moving in the chain.
This is used to understand whether market movements are influenced by long-term HODLers or newer market participants.
Additionally, when a significant portion of dormant coins move, it affects another important metric: Coin Days Destroyed (CDD).
As AMBCrypto has seen, the CDD witnessed a significant spike on January 16, indicating that a large number of long-term holders had moved their coins.
Source: CryptoQuant
The market is still driven by diamond hands
AMBCrypto dug deeper and tried to observe the movement of other age groups as well. This analysis contradicted what we have observed so far.
Notably, more than 850,000 Bitcoins were moved by cohorts belonging to the short-term holders category. In fact, almost 730,000 king coins alone were moved by traders who had purchased these coins a day earlier.
Therefore, the writing on the wall was clear. Despite the arrival of older coins, newer market participants continued to drive the market.
Source: CryptoQuant
The sentiment for BTC is turning negative
At the time of writing, Bitcoin exchanged hands at $42,715, down 0.18% over 24 hours, according to CoinMarketCap.
Notably, Bitcoin whale transactions have declined sharply since spot ETFs were approved, according to AMBCrypto’s examination of Santiment data.
Source: Santiment
Read Bitcoin’s [BTC] Price forecast 2023-24
Investor sentiment towards the coin also turned somewhat bearish as a result of the price drop.
However, most analysts predict a significant capital injection into the Bitcoin market in the long term. Therefore, the king coin was expected to get out of the short-term troubles easily.