Bitcoin Long-Term Holders Remain Calm During Correction

While the Bitcoin price moves around $63K and investors grow nervous, the so-called long-term holders remain notably calm. On-chain data suggests that this group is far from planning to take profits, which provides an interesting signal for the period ahead.

Bitcoin is available at OKX and Bybit.

What are long-term holders and why are they important?

In the crypto world, anyone who holds their Bitcoin for longer than six months without selling is called a long-term holder (LTH). A Glassnode study from 2020 shows that the probability of such a person moving their coins after 155 days of inactivity decreases significantly. In other words, the longer someone waits, the smaller the chance that they will sell quickly.

To measure the activity of this group, there is the so-called CVDD indicator, which stands for Coin Value Days Destroyed. It builds on the concept of Coin Days Destroyed (CDD), which calculates how many days a Bitcoin was held before it was moved. The CVDD adds a value component, so you not only see whether long-term holders are moving, but also how much value is involved in those movements.

What does the CVDD say about the current market?

Currently, the CVDD is around 0.3, a level that historically corresponds to bear markets or deep corrections. That sounds alarming, but it actually indicates that long-term holders are barely active. They are not selling. For comparison, in March 2024 the CVDD shot above 4, which coincided with a peak period when large profits were taken. Previous peaks above 2 were also associated with market tops, as analyst Darkfost points out on X.

The current low level therefore indicates that experienced holders remain cool-headed and are likely waiting for the Bitcoin price to rise further before deciding to take profits. This aligns with earlier signals, as large Bitcoin buyers recently emerged as a positive sign for the price. For investors who are unsure whether to sell now, the behaviour of long-term holders at least sends a clear message: patience seems to be the wisest choice for now.