Fun

Is Bitcoin's on-chain bull run momentum over? Indicator flashes red

News Feed - 2024-04-10 04:04:30

Ciaran Lyons1 hour agoIs Bitcoin"s on-chain bull run momentum over? Indicator flashes redThe indicator signals that behavior amongst Bitcoin OGs is quite different to previous Bitcoin halvings.749 Total viewsListen to article 0:00Markets NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin (BTC) OGs appear to be gearing up to cash in on their gains ahead of the Bitcoin halving, according to a leading indicator popular among crypto traders.


An indicator called the Value Days Destroyed (VDD) Multiple recently spiked above 4.0, leading crypto commentators to speculate that the wider market could be nearing the end of the bull run.


“Has on-chain momentum topped?” pseudonymous trader TXMC Trades asked their 83,200 X followers in an April 10 post.Source: TXMC Trades


The VDD Multiple is intended to highlight instances where the price of Bitcoin could be showing signs of overheating and nearing its peak during major market cycles.


A higher VDD Multiple reading indicates a larger number of Bitcoin quickly entering the market, likely to be sold.


It is measured bymultiplying the existing Coin Days Destroyed metric by the current price of Bitcoin to compare spending velocity over time.


Currently, it stands at 3.03, having briefly surged to 4.21 on March 28. It has doubled since the beginning of this year when the VDD multiple hovered around 2.04 on Jan. 1, as per GlassNodedata.The VDD multiple indicator peaked at 4.4 in April 2013. Source: Glassnode


The last time the VDD multiple went above 4 was in January 2021, when Bitcoin was $40,257.


However, the brief peak before the cooldown didn"t result in a market downturn, as Bitcoin"s price promptly surged. Just two months later, Bitcoin’s price soared by 52.2% to $61,283 in March 2021, as per CoinMarketCap data.


It is now just nine days to the Bitcoin halving, and it has surpassed the levels observed before past halving events.


During the same timeframe preceding the last halving on July 9, 2016, the VDD multiple stood at 0.419, while it reached 1.606 10 days before the 2020 Bitcoin halving.


Related:Bitcoin analysis eyes CPI as whales "pressure" BTC price below $69K


A senior researcher at Glassnode who goes by the name CryptoVizArt on X, attributed the soaring VDD multiple levels to the substantial outflows from Grayscale’s Bitcoin Trust (GBTC).


“Volume and age of Grayscale coins moving since 10th of January, push VDD to new highs,” he stated in an April 10post on X.


On Jan. 10, the United States Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETF) for trading. Since their approval, GBTC has shed a total of $15.96 billion in assets, as per Farside data.


The fund’s high fees relative to the other Bitcoin ETFs were also noted as a reason for the elevated outflows.


Bitcoin has surged by 56% since Jan. 1 this year, climbing from $44,172 to its current price of $69,260 at the time of publication.


Magazine:Nic Carter vs the Bitcoin Maxis, ‘no regrets’ about losing $10M DOGE: X Hall of Flame


This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Bitcoin Price# Adoption# Halving# Bitcoin Halving# RegulationAdd reaction

News Feed

Dogecoin Whales Buy 100 Million DOGE In 24 Hours – Demand Signals Growing Confidence
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Biden Administration Expected to Publish Report on Bitcoin Mining and the Industry’s Impact on Climate
Biden Administration Expected to Publish Report on Bitcoin Mining and the Industry"s Impact on Climate According to a new report, U.S. president Joe Biden and his administration ar
Savannah Fortis10 hours agoGoogle updates service policies to comply with EU regulationsGoogle and other major internet platforms must update their service policies to comply with EU standards from its Digital Services A
Turner Wright3 hours agoValkyrie will offer exposure to Ether futures as SEC delays spot Bitcoin ETFSome analysts have speculated the SEC will announce decisions or delays on crypto exchange-traded funds before Sept. 30
Abhishek Saxena11 hours agoHow to bear the bear market: Web3 tipsThis is the moment to stay true to your vision and remember why you began in the first place.554 Total views1 Total sharesListen to article 0:00Innovation
Arbitrum launches Gaming Catalyst Program to spur Web3 gaming growth
Tristan Greene4 hours agoArbitrum launches Gaming Catalyst Program to spur Web3 gaming growthThe program is asking for 200 million ARB to serve as a catalyst for gaming development.2569 Total views2 Total sharesListen to
Bitcoin Bounces Off Key Demand Level – Price Discovery On The Menu?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Russian Finance Ministry Rules Out Sale of Oil for Bitcoin
Russian Finance Ministry Rules Out Sale of Oil for Bitcoin The Russian government considers bitcoin as a payment option for small business transactions, not for oil exports, the co
Donald Trump Jr. is launching a crypto platform to ‘take on’ the banks
Martin Young4 hours agoDonald Trump Jr. is launching a crypto platform to ‘take on’ the banksDonald Trump Jr. has finally revealed what his cryptic DeFi post on X was all about, and it’s got nothing to do with meme
NYC Mayor Eric Adams Defends Receiving Paycheck in Bitcoin as Price Crashes
NYC Mayor Eric Adams Defends Receiving Paycheck in Bitcoin as Price Crashes The mayor of New York City, Eric Adams, converted his first paycheck into bitcoin and ether before the p
Derek Andersen2 hours agoExchanges federation touts crypto trading regulation, integration with TradFiThe World Federation of Exchanges, whose members handled $140 trillion in trades in 2022, has some concerns as its mem
Beam, BCH, BTC, Zcash to Halve Inflation Next Year
Beam, BCH, BTC, Zcash to Halve Inflation Next Year There’s been a lot of noise about Bitcoin’s halving, set to occur in May, and the effect this will have on price as