Brace for BTC price volatility? Bitcoin 'coin days destroyed' metric jumps to 2-month highs

Brace for BTC price volatility? Bitcoin ‘coin days destroyed’ metric jumps to 2-month highs

On March 8, the U.S. government moved 49,000 Bitcoin worth $1 billion seized from the Silk Road. The transfer was accompanied by Bitcoin’s (BTC) price slipping below $22,000, as well as a noticeable spike in a key holder metric.

But does this mean that traders should brace for potential BTC price volatility ahead?

Bitcoin’s CDD metric suddenly spikes

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The BTC transfer likely caused a significant spike in Glassnode’s Coin Days Destroyed (CDD) metric. It measures the weighted movement of Bitcoin based on the time it was last moved from an address.

The CDD is calculated by multiplying the amount of Bitcoin transferred by the number of days since BTC was last added to an address.

A spike in the CDD indicator usually precedes price volatility with the bears typically

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