Active_Realized_Price

Tech spec

Brief Description: Aggregate acquisition price considering only active supply.

Active_Realized_Price calculates the average cost basis of Bitcoin's economically active supply, reflecting real-time valuation. Active supply is defined by the cointime economics framework.

Interpretation Active_Realized_Price provides a dynamic and up-to-date valuation of the economically active Bitcoin supply, differing from traditional metrics that might include inactive or lost coins. It offers insights into the average price at which active market participants have acquired their Bitcoins. When used in conjunction with metrics like the Active MVRV Ratio, it can indicate price deviations and the unrealized profit or loss held within the active coin supply.

Advanced Explanation Active_Realized_Price is derived by dividing the total acquisition cost, which includes the cost of Bitcoin mined and purchased in secondary markets, by the active supply of Bitcoin (Active Supply). This model self-corrects to account for changes in the active supply, such as when long-dormant coins re-enter circulation.

Active_Realized_Price = Realized Cap / Active Supply

or

Active_Realized_Price = Realized Price / Liveliness

Cointime Economics is a new framework for Bitcoin onchain analysis published by James Check and David Puell. References: https://ark-invest.com/white-papers/cointime-economics/ and https://insights.glassnode.com/introducing-cointime-economics/