view dashboard view dashboard

Bitcoin VDD Multiple

Data & charts updated once per hour - Get 10 seconds

Price update 17 minutes ago
UTXO update 17 minute(s) ago

Chart

VDD Multiple Explained

The Value Days Destroyed (VDD) Multiple is a Bitcoin market indicator used to assess the strength of spending behavior over time by comparing short-term spending velocity to a yearly average.

It builds upon Coin Days Destroyed (CDD), which tracks how long coins remain unmoved on-chain before being spent.

By multiplying CDD by Bitcoin’s price, VDD allows for more accurate assessments of market activity as it adjusts for price fluctuations.

How to Calculate

The VDD Multiple is calculated by dividing the 30-day moving average (MA30) of VDD by its 365-day moving average (MA365).

This comparison helps detect periods of overheating or undervaluation.

How to Use

Extreme market tops

Bitcoin tops generally occur when long-term holders sell their coins, which typically aligns with the VDD Multiple exceeding 2.9, a threshold set by TXMC, the creator of VDD multiple.

VDD Multiple is above 2.9 during only 5% of Bitcoin’s history. This spike indicates heightened spending activity and often signals the end of euphoric bull runs.

Extreme market bottoms

On the other hand, a VDD Multiple below 0.75 suggests a bear market or accumulation phase, where old coins remain dormant, signaling a period of low activity.

Read More

A New Experiment in Cumulative Destruction - The original article by TXMC introducing the metric.

Model By:

TXMC

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.

Get More From Bitbo

View Private Charts

Get Alerts When We Launch New Charts