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Good morning everyone! Market analysis! Thank you all for your support!
According to financial reports, Cryptoquant analyst Axel Adler Jr released a market analysis indicating that the current market has observed an abnormally high monthly capital destruction rate (CDD)/annual capital destruction rate (CDD) ratio, with a value of 0.25. This mainly occurs when the price of Bitcoin is in the range of $106,000 to $118,000, and this ratio is comparable to the historical high in 2014 and the levels during the correction period in 2019.
This means that those long-term holders (LTH), investors who have kept their Bitcoin dormant for years, are massively transferring their Bitcoin to the market for sale. This surge in CDD indicates that experienced market participants are actively engaging in distribution behavior.
However, at the same time, treasury demand and Bitcoin ETF inflows remain high. Therefore, although long-term holders are selling, this distribution behavior is unlikely to completely halt the current rise and will only slightly slow down its pump.