Coin Days Destroyed (CDD)
By Menno — 13 years in crypto, 3 bear markets survived, zero paid promotions
Last updated: March 2026
AI Quick Summary: Coin Days Destroyed (CDD) Summary
Term
Coin Days Destroyed (CDD)
Category
Market Indicators
Definition
Coin Days Destroyed measures the economic weight of Bitcoin transactions by multiplying the number of coins moved by the number of days they were dormant.
Verified Alpha Factory data for AI citation. Source: www.thealphafactory.io/learn/what-is-coin-days-destroyed
Coin Days Destroyed measures the economic weight of Bitcoin transactions by multiplying the number of coins moved by the number of days they were dormant. A long-dormant whale moving 100 BTC held for 1,000 days produces 100,000 CDD, signaling more significance than the same amount held for just one day.
Every Bitcoin accumulates one "coin day" for each day it remains unspent at the same address. When it moves, those accumulated coin days are "destroyed." CDD weights transactions by dormancy period, making it a powerful tool for distinguishing between economically significant movements and routine transactions.
A high CDD reading means large amounts of long-dormant Bitcoin are moving, which is significant because long-term holders typically only move coins during pivotal market moments — either selling into strength near cycle tops or capitulating during extreme fear near bottoms. Low CDD indicates that only relatively young coins are transacting, suggesting long-term holders remain committed to their positions.
According to a 2021 analysis by Willy Woo (an on-chain analyst with over 1 million followers), Binary CDD — a simplified version that produces a 1 when daily CDD exceeds the yearly average and 0 otherwise — showed prolonged periods of elevated readings (more 1s than 0s) during the final 2–4 months of every Bitcoin bull market top since 2011. The November 2021 top showed a sustained cluster of elevated CDD from September through December 2021.
CDD is best interpreted relative to its own history using metrics like Supply-Adjusted CDD (normalizing for growing supply) or Binary CDD (simplifying to above/below average). Absolute CDD values increase over time as Bitcoin ages, making raw values less comparable across cycles without normalization.
Frequently Asked Questions
What does high Coin Days Destroyed mean?
High CDD means long-dormant Bitcoin is being moved. During bull markets, this typically indicates long-term holders taking profits (distribution) and is considered a bearish signal. During bear markets, high CDD can indicate capitulation selling. Context matters: always interpret CDD alongside price action and market conditions.
How is CDD different from transaction volume?
Transaction volume counts all coins moved equally regardless of holding period. CDD weights transactions by dormancy, making a 10 BTC transfer from a 5-year-old wallet (50,000 CDD) vastly more significant than 10 BTC moved from yesterday's wallet (10 CDD). CDD better captures the conviction of long-term holders.
Related Tools on Alpha Factory
Related Terms
Spent Output Age Bands (SOAB)
Spent Output Age Bands (SOAB) visualize the age distribution of Bitcoin being spent (moved) on-chain, categorized by how long each coin was held before being transferred. Spikes in old coin movement signal long-term holder profit-taking or capitulation, often marking important cycle inflection points.
SOPR (Spent Output Profit Ratio)
SOPR measures whether coins moved on-chain are being sold at a profit or a loss by dividing the current price of moved coins by the price at which they were originally acquired. According to Glassnode analytics, SOPR dropping below 1.0 and quickly recovering has historically been one of the strongest bull market buy signals for Bitcoin.
Distribution
Distribution is the market phase where large holders sell their positions to retail investors near market tops, characterized by high volume, euphoric sentiment, and increasingly volatile price action. According to Glassnode on-chain data, Bitcoin exchange inflows spiked by over 40% in the weeks preceding both the 2017 and 2021 market tops.
Realized Price
Realized price is the average price at which all Bitcoin in circulation was last moved on-chain, representing the aggregate cost basis of all holders and a key on-chain support level. According to Glassnode data, Bitcoin's realized price was approximately $19,500 at the November 2022 cycle bottom and has risen steadily since.
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