Bitcoin Days Destroyed (BDD) is a metric that calculates the activity of Bitcoin units over time. It reflects the number of days that a specific Bitcoin has been held before being spent. Each Bitcoin day represents one Bitcoin that has been unspent for one day.

For example, if one Bitcoin is held for five days and then spent, it contributes five Bitcoin Days Destroyed. If ten Bitcoins are held for four days each, they total 40 Bitcoin Days Destroyed. This metric is useful for assessing the movement and selling activity in the market. A higher BDD suggests that more long-term holders are selling, which might indicate market sentiment changes, while a lower BDD can indicate holders are less active, possibly reflecting confidence in Bitcoin’s value.

Traders and analysts use Bitcoin Days Destroyed alongside other metrics to gain insights into market trends, investor behavior, and potential future price movements. Overall, BDD aids in understanding the dynamics of Bitcoin supply and demand over time.