While volatility is in full swing across the markets and everyone seems to be reacting, some participants remain calm and simply observe.

According to Coin Value Days Destroyed, long term holders (LTHs) have become very inactive and appear to prefer holding their Bitcoin rather than selling at current prices.

Just like Coin Days Destroyed (CDD), which measures the number of days BTC has been held before being spent, CVDD adds a value component to the formula.

This makes it possible to evaluate whether LTH activity is materially impacting the market.

Today, with a CVDD reading around 0.34, the value spent by LTH is comparable to levels typically seen during bear market periods.

In other words, LTH are currently very inactive and largely choosing to hold.

During this cycle, market tops have tended to form when the CVDD exceeded 2, a level that reflects significant selling from LTH, which likely played a major role in the price dynamics of BTC when it occurred.

LTH are generally considered to act more rationally and strategically in the market compared with STHs.

For that reason, this cohort deserves close attention, as their behavior often provides valuable signals about broader market conditions.

Written by Darkfost