Cointime_Cap

Tech spec

Brief Description: Valuation metric representing the cointime-weighted value of the Bitcoin network.

Cointime_Cap is derived by multiplying the Cointime Price by the circulating supply, providing a valuation model for Bitcoin. It is based on the Cointime Economic framework.

Interpretation Cointime_Cap offers insights into the long-term investment behavior in the Bitcoin market. A high Cointime_Cap value could indicate a strong holding sentiment among investors, particularly those with long-term conviction. Conversely, a lower Cointime_Cap might reflect a decrease in the value held in long-term investments or a shift towards more active trading.

Advanced Explanation Cointime_Cap takes into account various factors, such as the value held by high-conviction investors who own long-dormant vaulted supply and the degree of value realization within the economically active supply. By doing so, it provides a more nuanced and comprehensive view of the Bitcoin network's overall value, especially when compared to simpler metrics like market capitalization.

Cointime_Cap = Cointime Price * Circulating Supply 

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/