Bitcoin has surged past the $94,200 resistance level, reaching the $97,500 zone, in a rally underpinned by long-term holder inactivity, according to on-chain data.
CryptoQuant’s Value Days Destroyed (VDD) metric, which tracks how long coins have remained dormant before being spent, currently sits at a historically low 0.53 for January 2026.
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Low VDD indicates that older coins remain untouched while only younger coins are moving, suggesting minimal selling pressure from long-term holders.
As CryptoQuant noted on X, “Historically, when Bitcoin’s price rises while VDD remains low, the market tends to be in a healthy expansion phase, where demand absorbs the available supply without generating structural selling pressure.”
Analyst Carmelo Alemán says that Bitcoin’s breakout above resistance and its sustained upward momentum are being reinforced by long-term holders staying on the sidelines, what signals that the rally is backed by real market strength rather than short-term speculative activity.
“This scenario will remain intact as long as the VDD stays low. A sustained increase in the indicator would signal distribution from long-term holders,” CryptoQuant’s report notes.
OG Bitcoin Activity Slows as
Further supporting the rally, activity from OG Bitcoin holders, wallets dormant for more than five years, has dropped sharply.
On-chain data shows that spending by these early-cycle holders has declined significantly during this cycle compared with previous peaks.
CryptoQuant reports that during this cycle, OG holders were initially highly active, taking advantage of a favorable market window that included the influx of institutional and even government buyers.
The 90-day average of Unspent Transaction Output (UTXO) spent by OG holders has dropped from about 2,300 BTC at its peak to roughly 1,000 BTC, indicating a marked shift from selling to holding.
“The prevailing trend now seems to lean more toward holding rather than distribution,” CryptoQuant’s analyst Darkfron noted.
Why This Matters
These metrics suggest that Bitcoin’s recent price momentum is structurally supported, with long-term holders effectively sitting out the rally, reducing the risk of sudden supply-driven corrections.
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People Also Ask:
Value Days Destroyed (VDD) measures how long bitcoins remain inactive before being spent. Low VDD often signals that long-term holders are not selling, which can indicate a structurally healthy market.
When Bitcoin rises while VDD remains low, it suggests the rally is supported by strong demand rather than short-term speculation, reducing the risk of sudden price drops.
A UTXO (Unspent Transaction Output) represents Bitcoin that has not yet been spent. Bitcoin wallets are made up of many UTXOs, and they track ownership and spending history.
No. Long-term holding supports market stability but price movements also depend on overall demand, macroeconomic conditions, and investor sentiment.