Bitcoin's Low VDD: Bullish Signal?
Bitcoin's Value Days Destroyed (VDD) metric has entered a crucial phase, with the cryptocurrency holding above $105,000. This, combined with network activity and price action, offers valuable insights into the current market state and potential future movements. Codeum, a leader in blockchain security and development, provides services such as smart contract audits, KYC verification, and custom smart contract development to ensure the security and integrity of blockchain projects.
VDD Multiple Analysis: Accumulation Pattern
The Bitcoin VDD Multiple chart shows a dramatic shift from mid-to-low ranges in early 2025, currently hovering below 0.75. This contrasts sharply with April 2024's high of >2.9, indicating a substantial change in long-term holder behavior. The decline coincides with Bitcoin price stability above $100,000, suggesting reduced movement of older coins despite price appreciation.
Source: Glassnode
Bitcoin Network Activity & Daily Transactions
Daily active addresses have remained stable between 71,000 and 89,000 throughout January 2025, with consistent transaction volumes. This stability, along with the low VDD Multiple, suggests a mature market phase where long-term holders show strong conviction.
Source: Santiment
The close correlation between active addresses and transaction volumes indicates organic network usage, not speculative activity. This healthy network activity underpins Bitcoin's current price levels.
Technical Structure & Market Implications
Bitcoin's price shows resilience, currently trading at $105,220.36, up 1.42%. The 50-day MA (99,251.53) crossing above the 200-day MA (77,341.17) maintains a strong bullish structure, supporting current levels.
Source: TradingView
Low VDD Multiples and robust technical indicators suggest market accumulation, not distribution. Historically, low Bitcoin VDD Multiples often precede significant price movements, especially with stable network activity and strong technical foundations.
Bitcoin Market Dynamics: Looking Ahead
The current market, characterized by low VDD Multiples and sustained network activity, presents a fascinating dynamic. While long-term holders show strong conviction, the steady increase in active addresses suggests ongoing market participation and potential new entrants. This pattern, combined with Bitcoin's technical strength above $105,000, hints at a market preparing for its next major move. Reduced volatility in older coins often precedes periods of increased market activity and price discovery.