Coin Velocity

Trailing-window Coin Days Destroyed divided by circulating supply. Raw CDD spikes look dramatic on a log axis but they're hard to compare across eras with very different supply levels. Dividing by supply normalises the metric: a velocity of 90 means the trailing 90-day window destroyed an entire supply's worth of coin-days, on average.

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Velocity over time

Solid line: 90-day rolling window. Dashed line: 365-day window for the slower-moving trend. Both are computed from the same daily CDD aggregation; the difference is window size. Supply is derived from cumulative coinbase subsidy (deterministic, doesn't account for provably-lost coins).

Why velocity matters

Raw CDD answers "how much did old coins move today?" but it doesn't account for supply growth. A 1M BTC·day destruction in 2012 (when supply was ~10M BTC) meant something very different than the same number in 2026 (when supply is ~19.8M BTC). Dividing by supply gives you a comparable number across all eras: how active are old coins relative to the size of the network.

Sustained low velocity tells you holders are sitting tight. Sustained high velocity tells you long-time holders are repositioning. Sharp single-day spikes are usually identifiable events: exchange consolidations, government forfeiture sales, post-bankruptcy distributions. Cycle tops historically show up as multi-month elevated readings before the spot price actually peaks.

Methodology

← back to all reports  ·  see also: raw Coin Days Destroyed