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CVDD (Cumulative Value Days Destroyed)

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CVDD Explained

Cumulative Value Days Destroyed (CVDD) is a Bitcoin valuation metric created by Willy Woo.

When coins move from one investor to another, the transaction carries both a USD value and destroys a time value based on how long the original investor held their coins. CVDD tracks the cumulative sum of this value-time destruction as coins change hands, divided by the age of the market.

Formula
CVDD (USD) = ∑(Coin Days Destroyed × Price) / (Days × 6,000,000)

CVDD has historically marked Bitcoin's major price bottoms with remarkable accuracy. Unlike other bottom indicators, CVDD tends to consistently climb in value over time, making it useful for framing an increasing lower bound during bear markets when prices are falling. When paired with the Top Price model, CVDD provides a lower band for price action, helping investors visualize potential accumulation zones.

For more information, see Willy Woo's original write-up: Experiments on Cumulative Destruction.

Disclaimer
Any information found on this page is not to be considered as financial advice. You should do your own research before making any decisions.

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