Cointime_Price

Tech spec

Brief Description: Cointime-weighted realized valuation of a one bitcoin, anootated in USD.

Cointime_Price is a cointime- and volume-weighted on-chain metric that represents the aggregate realized valuation distributed across the remaining unspent coinblocks in the Bitcoin network. It is analogous to the Realized Price in traditional Bitcoin economics, offering a nuanced view of market dynamics. It is based on the Cointime Economic framework.

Interpretation Cointime_Price is particularly insightful in understanding market behaviors during different stages of the market cycle. For instance, Cointime_Price often intersects with spot prices during late-stage bear cycles, as evidenced in historical data points like November 2018 and March 2020. This intersection can signal a point where the market valuation, as measured by cointime, aligns with the immediate market price, often indicating periods of market consolidation or potential trend reversals.

Advanced Explanation The calculation of Cointime_Price involves distributing the aggregate value of Bitcoin across the remaining cointime volume stored in the system. It reflects a balance between the market's willingness to spend time and value and the asset holders' inclination to keep their coins and value inactive. This measure provides a nuanced view of the market dynamics, factoring in both the time aspect and the volume of unspent Bitcoin.

Cointime_Price = Cumulative Cointime Value Destroyed / Cumulative Blocs Stored

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/