Analyst: Long term holders are massively transferring Bitcoin to the market for sale, which will only slow down its upward trend

According to a report by Golden Finance, Cryptoquant analyst Axel Adler Jr has released a market analysis stating that the current market is observing an abnormally high monthly capital destruction ratio (CDD)/annual capital destruction ratio, with a value as high as 0.25. This mainly occurs when the price of Bitcoin is in the range of $106000 to $118000, which is comparable to the historical high in 2014 and the level during the correction period in 2019. This means that long-term holders (LTH), investors who have kept their Bitcoin dormant for years, are massively transferring their Bitcoin to the market for sale. This surge in CDD indicates that experienced market participants are actively engaging in distribution behavior. However, at the same time, the demand for treasury funds and the inflow of Bitcoin ETF funds remain high. Therefore, although long-term holders are selling, this distribution behavior is unlikely to completely stop the current upward trend, but will only slightly slow down its upward speed.