CoinDaysInProfit

Tech spec

Brief Description: Coin Days of UTXOs held in profit (spending price > acquisition price).

CoinDaysInProfit measures the Coin Days of UTXOs held at a profit, serving as a proxy for HODLing conviction among Long-Term Holders (LTH) and Short-Term Holders (STH).

Metric variants

• _lth: CoinDaysInProfit restricted to Long-Term Holders (age ≥ 155 days).
• _sth: CoinDaysInProfit restricted to Short-Term Holders (age < 155 days).

Interpretation CoinDaysInProfit can indicate whether the market unrealized profits are being held by speculators (indicating optimism during rallyes) or experienced investor (indicating a long term confidence and decreasing bearish sentiment during early bull markets). A increasing CoinDaysInProfit generally indicates the amelioration of bull market conditions and the capacity of participants to not realised their gains. A decreasing CoinDaysInProfit generally indicates that gains are being taking or that market conditions are getting bearish.

Advanced Explanation CoinDaysInProfit is reffering the concept of and Coin Days (CD) and Coin Days Destroyed (CDD), originally mentionned on Bitcointalk forum in 20211.

• Coin Days essentially measures the length of detention of a given UTXO. When a UTXO is transferred, the timestamp of the creation of the new UTXO serves as the Day 0 of detention. Then, when this UTXO is spend, the count of accumulated number of days of dentention (Coin Days) is set back to 0.
• CoinDaysInProfit tracks the amount of Coin Days for every UTXO having a acquisition price superior to the present price. It can serve to identify the ability of participants to sit on their gains and serves as a proxy of the HODLing conviction among Long Term Holders and Short Term Holders.