[Analysis] Bitcoin Average Dormancy - Adaptive Capital

Bitcoin ($BTC) Average Dormancy measures Bitcoin days destroyed over the on-chain volume giving a clearer indication of general market sentiment, according to Adaptive Capital. By measuring how often and how much old BTC HODLers are releasing coins into the ecosystem, a picture of market bullishness versus bearishness appears. Multiple metrics jump off from Average Dormancy as well including Supply Adjusted Dormancy, Dormancy-to-UTXO-Age Ratio, and Dormancy Flow. When dealing with on-chain value transfers, the rise of off-chain systems like Lightning must be taken into consideration.