, 2022-11-19 22:00:00,
This is an opinion editorial by Shane Neagle, the editor-in-chief of “The Tokenist.”
Macroeconomic headwinds are continuously adding to a bearish narrative across all markets, including bitcoin.
As of October 2022, bitcoin is down more than 60% since the start of the year, yet bitcoin’s trading volume remains fairly consistent since July 2022. Does that mean the majority of holders are giving up on the prospect of bitcoin and opting to sell?
This is a complex topic to dive into, but there’s one indicator that can help us paint a picture of what’s taking place behind the noise: coin days destroyed (CDD).
What Are Coin Days Destroyed?
Throughout the course of an asset’s trading history, there is a significant difference if the buying price was on the lower or higher end of the price spectrum. In the case of bitcoin, that spectrum is relatively short — just 13 years — but quite variable in terms of price (ranging from $0-$69,000). The original cryptocurrency has undergone four major bull and bear cycles, but when zooming out, has continuously trended upwards.
The implication of this long-term, upward trajectory is clear. Investors who were the earliest to buy bitcoin have the most to gain by selling, even in bear markets. Likewise, investors who took the opportunity to purchase bitcoin early and at a lower cost, had the opportunity to buy much more bitcoin for the same amount of fiat currency compared to prices later in bitcoin’s…
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