Indicator Overview

The indicator is Velocity. It measures the rate at which Bitcoin circulates or changes hands within the economy over a given period. It's calculated as the Total Daily Transaction Volume (in BTC) divided by the Total Circulating Supply. Essentially, it tells you how many times a coin is used in a transaction on average.

How To Use

Velocity helps gauge the utility and activity of the Bitcoin network.

Rising Velocity (high readings) indicates that coins are changing hands more frequently, often coinciding with periods of high market activity, excitement, or a price rally. It suggests increasing utility and liquidity.

Falling Velocity (low readings) suggests coins are moving less frequently, often seen during periods of accumulation, dormancy, or bear markets, as holders save their coins and the network's on-chain activity slows down.