Subscribe to our newsletter and stay informed

Check out our list of top companies

Check out our carefully compiled lists of the most relevant and impactful companies within their fields.

Check out our list of top unicorns

Read and learn about the biggest companies that various countries have produced, how they made it, and what the future looks like for them.

Bitcoin Bull Run Losing Momentum? Key Indicator Suggests Slowdown

Bitcoin's possible easing, spotlighting the Value Days Destroyed Multiple indicator above 4.0 ahead of the halving
April 11, 2024

In the dynamic world of cryptocurrency, Bitcoin's on-chain momentum is a key indicator guiding the direction of market trends. As the Value Days Destroyed (VDD) Multiple indicator surges above 4.0 pre-halving, crypto traders are abuzz with speculation about the future trajectory of the ongoing bull run.

The VDD Multiple, a renowned metric, serves as a barometer for identifying potential market peaks during major cycles. A surge in this indicator often points to heightened Bitcoin sales, signaling a possible cooling off period for the cryptocurrency.

Currently standing at 3.03, with a notable spike to 4.21 on March 28, the VDD Multiple has doubled since the year's inception. This surge, as per GlassNode data, surpasses previous levels observed before significant market events, including halving events.

However, history shows that previous peaks in the VDD Multiple did not necessarily result in market downturns. In fact, preceding instances witnessed Bitcoin's price surging post-peak, as evidenced by the remarkable 52.2% increase to $61,283 just two months after the VDD Multiple surpassed 4 in January 2021.

The recent uptick in the VDD Multiple is attributed to substantial outflows from Grayscale's Bitcoin Trust (GBTC), according to senior researchers at GlassNode. This outflow, amounting to $15.96 billion, coincides with significant market movements.

As Bitcoin's halving event looms just nine days away, experts speculate on its impact on the ongoing bull run. Marathon Digital Holdings Inc. CEO, Fred Thiel, suggests that the recent surge in Bitcoin's price could be partially attributed to the approval of spot Bitcoin ETFs by the U.S. SEC, which potentially accelerated price appreciation that typically follows halving events.

While opinions vary regarding the implications of the impending halving, the market remains on edge, with billionaires like Arthur Hayes expressing caution about potential price fluctuations.

As the crypto market braces for volatility, the significance of on-chain indicators like the VDD Multiple becomes increasingly pronounced, serving as vital navigational tools for traders in the ever-evolving landscape of cryptocurrency.

More about: 

Last related articles

chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram