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HomeBitcoinBitcoin’s Stability Tests Market Theories as Key Metric Hits New Phase

Bitcoin’s Stability Tests Market Theories as Key Metric Hits New Phase

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  • Bitcoin’s VDD multiple drops below 0.75 as long-term holders retain coins despite prices holding above $105,220 in early 2025.
  • Daily active addresses stabilize between 71K-89K; transaction volumes show baseline activity, indicating organic network usage over speculation.

Bitcoin’s Value Days Destroyed (VDD) multiple, a metric tracking coin movement patterns, has fallen below 0.75 in early 2025. This marks a contrast to April 2024, when the metric exceeded 2.9.

Despite the decline, Bitcoin’s price remains above $105,220, suggesting long-term holders are retaining assets rather than selling during price increases. The VDD measures the ratio of coin dormancy periods to transactional activity, with lower values indicating reduced movement of older coins.

glassnode-studio_bitcoin-value-days-destroyed-multiple
Source: Glassnode

Network activity supports this observation

Bitcoin’s on-chain activity demonstrates stability, with daily active addresses oscillating between 71,000 and 89,000. Transaction throughput maintains baseline consistency, reflecting non-speculative utility rather than short-term arbitrage.

Covariance analysis between address activity and transaction volumes demonstrates tight coupling, confirming organic network utilization over synthetic trading patterns. These metrics align with Bitcoin’s market maturity cycle, characterized by HODLing behavior superseding transactional churn.

Bitcoins-network-activity-and-daily-transactions
Source: Santiment

The observed equilibrium in network fundamentals correlates with long-term asset retention strategies among holders. Reduced transactional volatility alongside steady address reuse rates suggests supply-side favoring illiquid supply conditions.

Such structural patterns typically precede price inflection points, as constrained coin availability amplifies demand-side pressure. This phase underscores a market structure where accumulation persists despite nominal price appreciation above $105,000 resistance levels.

Bitcoin’s technical indicators add context to its price

Bitcoin’s price consolidation at $105,220.36 (+1.42%) maintains superiority over the 200-day MA ($77,341.17), structurally confirming bullish sentiment divergence. This moving average hierarchy signals intermediate-term momentum dominance, reinforcing holder confidence despite macro volatility.

BTCUSDT_2025-01-30_14-35-59
Source: Tradingview

Volumetric analysis reveals suppressed VDD multiples alongside price persistence above $100,000, a tandem historically correlating with accumulation regimes. Long-term investors exhibit supply absorption patterns, evidenced by dormant UTXO cohorts resisting profit-taking triggers.

Such on-chain behavior frequently precedes parabolic price phases, as illiquid supply expansion constrains circulating inventories. The convergence of technical strength and holder discipline now tests historical precedents for breakout thresholds.

This balance between retention and engagement creates a foundation for price durability. ETHNews analysts note that low VDD multiples often coincide with periods where supply tightens, which can amplify price reactions to shifts in demand.

Looking ahead, Bitcoin’s trajectory may depend on external factors. Regulatory developments, macroeconomic conditions, and technological upgrades could influence behavior. For now, the network’s technical health and investor discipline provide a buffer against volatility.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628
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