Bitcoin OGs are preparing to capitalize on their gains ahead of the upcoming Bitcoin halving, according to a popular indicator among crypto traders. The Value Days Destroyed (VDD) Multiple recently surged above 4.0, leading experts to speculate that the bull run may be coming to an end. The VDD Multiple is designed to identify instances where the price of Bitcoin may be overheating and approaching its peak during major market cycles. A higher VDD Multiple reading suggests that a significant amount of Bitcoin is entering the market and likely to be sold. Currently, the VDD Multiple stands at 3.03, having briefly spiked to 4.21 on March 28. This is double the value at the beginning of the year. The last time the VDD Multiple surpassed 4 was in January 2021, when Bitcoin was priced at $40,257. However, this brief peak did not result in a market downturn as Bitcoin’s price surged by 52.2% just two months later. With the Bitcoin halving only nine days away, the VDD Multiple has surpassed previous levels observed before past halvings. The substantial outflows from Grayscale’s Bitcoin Trust (GBTC) were cited as a reason for the soaring VDD Multiple levels. Since the approval of spot Bitcoin exchange-traded funds by the United States Securities and Exchange Commission on January 10, GBTC has lost $15.96 billion in assets. Bitcoin’s price has risen by 56% since the beginning of the year, currently sitting at $69,260.
Has the momentum of Bitcoin's on-chain bull run come to an end? Red indicator signals a potential downturn.