CoinDaysInProfit_STH

Tech spec

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

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

Interpretation CoinDaysInProfit_STH 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_STH generally indicates the amelioration of bull market conditions and the capacity of participants to not realised their gains. A decreasing CoinDaysInProfit_STH generally indicates that gains are being taking or that market conditions are getting bearish.

Advanced Explanation CoinDaysInProfit_STH 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_STH 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.