Liveliness_Concurrent

Tech spec

Brief Description: Liveliness for a specific block, measured as the ratio of Coinblocks Destroyed to Coinblocks Created.

Liveliness_Concurrent, or Concurrent Liveliness, quantifies the activity level within the Bitcoin network on a block-by-block basis. It highlights the expenditure of previously dormant coins relative to the creation of new Coinblocks, providing insights into real-time economic activity.

Interpretation A peak in Concurrent Liveliness indicates a period of significant expenditure, often by long-term holders, which could signal a shift in market sentiment or a response to market events. A decline suggests a trend towards accumulation and holding, indicative of a bearish market or a preparation phase for a potential market upswing. Understanding Liveliness_Concurrent helps analysts and investors to interpret the current phase of market activity, especially the behavior of long-term holders in relation to market trends.

Advanced Explanation Concurrent Liveliness peaks during periods of high spending of older coins that were previously inactive. It declines during times of aggregate long-term accumulation, reflecting investor preference for holding (HODLing). This metric helps to gauge the real-time economic activity within the Bitcoin network by tracking the spending of aged coins.

Liveliness_Concurrent =  CBD /  CDC

where CBD is Coinblocks Destroyed and CDC is Coinblocks created, in a specific block

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/