Bitcoin’s dormant coins are mass-moving again: What it means for BTC

Key Points

1. Bitcoin's monthly CDD/Yearly CDD ratio surged to 0.25, indicating increased distribution of dormant coins by long-term holders (LTHs).

2. Historical data shows similar CDD spikes in 2014 and 2019, which were followed by significant price corrections.

3. Long-term holder supply has declined by 240k BTC, suggesting active distribution by experienced players.

4. Institutional demand remains strong, with spot ETF inflows (excluding GBTC) led by IBIT ($57.15 billion) and FBTC ($12.33 billion).

5. While LTH distribution may slow the rally, it is unlikely to stop it, and BTC could retest its all-time high if distribution cools down.