Bitcoin Days Destroyed (BDD) is like measuring not just how many coins moved, but also how long they were stationary before being transferred. If someone moves 50 BTC that sat untouched for 100 days, that equates to 5,000 ‘days destroyed.’ This gives analysts more context than raw transaction volume, since newly received or frequently moved coins won’t accumulate many ‘idle days.’

By studying fluctuations in BDD, on-chain researchers try to identify periods when long-term holders are cashing out or when day-to-day trading is primarily driving the market. Although it can’t perfectly predict price moves, it provides insight into the behavior of so-called ‘diamond hands’ who hold large amounts of Bitcoin for extended durations.