Indicator Overview

The indicator is Active Supply. This metric quantifies the Bitcoin supply that is actively participating in the economy, expressed as the total circulating supply adjusted for liveliness. It effectively weighs each coin in the circulating supply by how often it has been spent. This results in a smoothed, monetary volume measurement that highlights periods of high supply turnover and engagement in the market.

How To Use

Active Supply is useful for tracking the velocity of capital and identifying shifts in market engagement. Rising values indicate that the circulating supply is becoming more active, suggesting increased distribution, profit-taking, or widespread re-accumulation. This rapid increase in velocity is typical of strong uptrends or periods leading up to major price moves. Conversely, falling or low, suppressed values indicate that the majority of the circulating supply is dormant and inactive. This decline in velocity is often seen during deep bear markets or extended consolidation phases, signaling a period of reduced interest and low volatility, which can precede a eventual market bottom or accumulation phase.