Waiting for the light green bottom signal Bitcoin: Value Days Destroyed Multiple (VDD Multiple) is an on-chain indicator for Bitcoin that measures the ratio of short-term spending speed to long-term average levels, helping to identify potential market cycle tops and bottoms. It’s based on Coin Days Destroyed (CDD), which represents the number of coin days destroyed (giving higher weight to Bitcoin that hasn’t moved for a long time to reflect the behavior of long-term holders). Then, it multiplies this by the current Bitcoin price to get Value Days Destroyed (VDD). The formula for calculating VDD Multiple is: 30-day VDD average divided by 365-day VDD average. When VDD Multiple < 0.75 (light green zone in the chart), it reflects a decrease in short-term spending speed relative to the annual average level, indicating reduced activity in selling old coins by long-term holders and lower overall market spending vitality. This often suggests the market is in a cooling-off period, accumulation phase, or potential cycle bottom. Long-term holders are more inclined to hold rather than sell, which may represent a relatively undervalued or buying opportunity. Note: The current high level of this indicator is due to Coinbase’s recent address consolidation, which caused data contamination in this metric. This will be resolved 30 days after the event.