An on-chain data showed a dumping of an 11-year-old coin worth $20 million. This is believed to be the reason for Bitcoin’s recent drop.
Coin Day is being destroyed
According to an analyst on CryptoQuan, a large amount of inactive Bitcoin (BTC) from 11 years ago seems to be moving before the price drops below $40k today (March 11).
It is known that the relevant indicator here is the “Coin days destroyed” (CDD) indicator. In which, “Coin days” is the number of days that Bitcoin has not been used.
When 1 BTC stays at the same price for a day, then it accumulates 1 coin during the day. Similarly, 0.5 BTC will be reserved as 1 coin day only after the coin has not moved for 2 days.
After these coins are used or transferred, the number of days of this coin will be “destroyed” the number of them will also be reduced to 0. The number of days “destroyed” is what only number of measurable CDD reports.
So when the index shows a spike in value, it means a large amount of inactive coins have been moved. This also represents the dumping of coins by long-term holders. Also, this is a bearish Bitcoin sign.
Here is a chart showing the trend of BTC CDD over the past day:
As you can see, in recent times BTC CDD’s index has spiked. According to measured data, this index spiked by the displacement of an 11-year-old BTC vault with 489 coins. At the time it went dormant in 2010, the coins were worth $50. But as of now, its value has exceeded 20 million dollars.
The movement of this coin is said to have happened before Bitcoin dropped in price today. This drop can be attributed to the dumping of coins.
Bitcoin Price Update
At the moment the coin price is at $39,000, down 10% from the last 7 days. In the last month alone, the coin has dropped 11% in value.
The chart below shows the price trend of this coin over the past five days:
After a period of sideways movement, it can be seen that Bitcoin has shown a strong uptrend. Crossing the $42,000 mark. But it doesn’t last too long.
Today, we can see the coin has dropped to the $40,000 level. The date of recovery from the war in Ukraine is unknown at this time.
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