Key Takeaways:
- Analyst says Bitcoin ETFs and corporate treasuries are absorbing this selling pressure from whales.
- Bitcoin’s CDD ratio hits 0.25, signaling heavy whale distribution.
- Bitcoin holding above $106K shows the market still has strength.
Bitcoin (BTC) is currently trading around $118,000, facing selling pressure after hitting new all-time highs on July 14. Retail investors are watching short-term price action, one on-chain analyst says whales may be quietly distributing.
Whales Are on The Move
Axel Adler Jr., an analyst with CryptoQuant, claims that the market is exhibiting indications of increased activity among long-term holders (LTH). The Monthly Coin Days Destroyed (CDD) to Yearly CDD ratio has reached an unusually high value of 0.25.
Coin Days Destroyed (CDD) measures how long Bitcoin was held before being moved. Older coins moved means Higher CDD. The Monthly/Yearly CDD ratio compares recent activity to the past year. A high ratio means long-term holders are selling more now, which can signal market shifts.
This primarily happens when the price of Bitcoin is between $106,000 and $118,000, and the ratio is similar to both the 2014 historical high and the 2019 correction period levels. Such increases in CDD imply that long-term coin holders, sometimes known as “smart money,” are actively dispersing their holdings.
“This means long-term holders who kept their coins dormant for years are moving them to the market,” Adler wrote.
Adler emphasized that despite evidence of whales cashing out, the selling pressure is still being absorbed by strong spot Bitcoin ETF inflows and treasury demand.
He said, “This distribution may slow the rally a little, but it is unlikely to stop it.”
Structural demand is still high even though the market may temporarily show declines. Bitcoin has managed to stay above the $106,000 mark, a crucial area where notable CDD activity was noted, even though long-term holders have been actively selling. This implies that players with experience are distributed in this range. However, the fact that prices are still stable here suggests that there is a lot of underlying demand.
Despite net outflows from Spot Bitcoin ETFs for three days in a row, the overall trend still remains positive as the price has consolidated around $118,000. Interestingly, $IBIT and $FBTC are now among the fastest ETFs in history to achieve $10 billion in assets. Only ten days later, $ETHA doubled from $5 billion to $10 billion. While some long-term holders are cashing out, stronger institutional interest and ETF demand could pave the way for the next move in Bitcoin.
