How ‘Liveliness’ Can Track Bitcoin Price Bull And Bear Cycles
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Today, we’re revisiting a useful on-chain metric, Liveliness, that tracks the accumulation and distribution behavior of HODLers. As a refresher, Liveliness is calculated as a ratio: the sum of all Coin Days Destroyed and the sum of all coin days ever created.
- Liveliness increases as long-term holders distribute more coins, creating more coin days destroyed relative to coin days created.
- Liveliness decreases as long-term holders accumulate more coins, creating less coin days destroyed relative to coin days created.
Throughout bitcoin’s history, we see clear patterns of long-term holder distribution and accumulation that drive bull and bear market cycles that can be easily tracked with Liveliness.