{"uuid":"1fb54dc2-ce1a-4fe4-6dee-2774f41fad42","categoryUuid":"752fce11-1913-47e4-5707-91c0b669f02b","data":{"meta":{"name":"BTC: Spending Dynamics"},"configs":[{"meta":{"refUuid":"2f23cfa6-0be3-4816-7a03-0efe4ae3407b"},"uuid":"20d4e1bc-b0cf-460c-a816-57ec2b602e45","extra":{"zoom":"2y"},"configType":"workbench"},{"meta":{"refUuid":"6bbc9cc4-3e16-4b81-4026-3bdb901604ee"},"uuid":"2eadd14c-952a-493f-819b-b9851d4be052","extra":{"zoom":"2y"},"configType":"workbench"},{"meta":{"refUuid":"2e80bc52-0f8b-4189-575d-85c241348171"},"uuid":"786dd6fe-fa8a-444e-b0a8-22c14a7ebe34","extra":{"zoom":"5y"},"configType":"workbench"},{"meta":{"asset":"BTC","miner":"aggregated","mathFn":{"name":"ema","value":"7"},"currency":"native","exchange":"aggregated","exchangeTo":"aggregated","metricCode":"indicators.RealizedProfitLossRatio","resolution":"24h","exchangeFrom":"aggregated","movingMedian":0,"movingAverage":0,"expMovingAverage":"7"},"uuid":"44fbc03d-d225-4170-9409-4650d1e0b710","extra":{"zoom":"5y","price":true,"scale":"log","lineColor":"#f7931a","chartStyle":"line"},"configType":"metric"},{"meta":{"asset":"BTC","currency":"native","metricCode":"indicators.SoprAdjusted","resolution":"24h"},"uuid":"1bd90faf-0e9d-419d-a214-67133acded54","extra":{"zoom":"2y","price":true,"scale":"lin","lineColor":"#f7931a","chartStyle":"line"},"configType":"metric"},{"meta":{"asset":"BTC","miner":"aggregated","mathFn":{"name":"ema","value":"14"},"currency":"native","exchange":"aggregated","exchangeTo":"aggregated","metricCode":"indicators.Svab","resolution":"24h","exchangeFrom":"aggregated","movingMedian":0,"movingAverage":0,"expMovingAverage":"14"},"uuid":"9e61e426-c132-487b-8455-3a978bd3c915","extra":{"zoom":"2y","price":true,"scale":"lin","lineColor":"#f7931a","chartStyle":"line"},"configType":"metric"},{"meta":{"asset":"BTC","miner":"aggregated","mathFn":{"name":"ema","value":"7"},"currency":"native","exchange":"aggregated","exchangeTo":"aggregated","metricCode":"indicators.Cdd","resolution":"24h","exchangeFrom":"aggregated","movingMedian":0,"movingAverage":0,"expMovingAverage":"7"},"uuid":"41058555-8391-4eb6-bbb4-24a1043cf1c9","extra":{"zoom":"2y","price":true,"scale":"lin","lineColor":"#f7931a","chartStyle":"line"},"configType":"metric"},{"meta":{"asset":"BTC","miner":"aggregated","mathFn":{"name":"ema","value":"7"},"currency":"native","exchange":"aggregated","exchangeTo":"aggregated","metricCode":"indicators.AverageDormancy","resolution":"24h","exchangeFrom":"aggregated","movingMedian":0,"movingAverage":0,"expMovingAverage":"7"},"uuid":"05047794-e3f4-499c-9cf8-65389a41ee39","extra":{"zoom":"2y","price":true,"scale":"lin","lineColor":"#f7931a","chartStyle":"line"},"configType":"metric"},{"meta":{"asset":"BTC","currency":"native","metricCode":"indicators.NetRealizedProfitLoss","resolution":"24h"},"uuid":"142b6a7b-3e03-416e-9d8f-1f579c695312","extra":{"zoom":"5y","price":true,"scale":"lin","lineColor":"#f7931a","chartStyle":"line"},"configType":"metric"},{"meta":{"refUuid":"0938016c-dda5-4763-7c3a-370aac2b4b53"},"uuid":"0aea6936-444c-4906-b58a-fd43d44bcf3c","configType":"workbench"},{"meta":{"refUuid":"6da7470a-e8ea-49ff-411a-fd7b95acc20a"},"uuid":"c909e90e-15fe-4210-8742-6eb707b7cd9a","configType":"workbench"},{"meta":{"content":"# Spending Analysis 💳\n\n---\n\nOne of the most powerful sets of tools in on-chain analysis is assessing patterns in spending behavior. This provides insight into the cohorts of coin holders that are active in the economy, as well as the realized profit/loss as a gauge of sentiment, and capital inflow/outflows.\n\nWe assess spending via a number of lenses:\n\n- 🪙 **Coin volumes spent** (magnitude of capital)\n- 🕰️ **Holding time of spenders** (conviction and experience)\n- 💸 **Realized profit/loss** (sentiment and directional bias)\n\n---\n\n### Transfer Volume Momentum [USD]\n\nThis metric, compares the monthly average 🔴 transfer volume against the yearly average 🔵 to underline relative shifts in dominant sentiment and help identify when the tides are turning for network activity.\n\n- Monthly 🔴 \u003e Yearly 🔵 indicates an expansion in on-chain activity, typical of improving network fundamentals, and growing network utilization.\n\n- Monthly 🔴 \u003c Yearly 🔵 indicates a contraction in on-chain activity, typical of deteriorating network fundamentals, and declining network utilization.\n"},"uuid":"8e9d6d7b-01a9-4acf-9a05-2690536057b1","extra":{"backgroundColor":"#ffffff"},"configType":"content"},{"meta":{"refUuid":"288517cd-9d98-4ca7-687b-9bb84a1d83cc"},"uuid":"0a0c691e-3547-4b26-9706-899ffc3116fe","extra":{"zoom":"5y"},"configType":"workbench"},{"meta":{"refUuid":"093dbf31-02de-4b17-4585-0f92ed5b365e"},"uuid":"dcf8dca9-5f29-4534-a82a-5e83ce3bf337","configType":"workbench"},{"meta":{"refUuid":"ffd0aecc-91f7-4e4f-4344-a5851df91d2d"},"uuid":"61ddc239-68b8-469c-91a7-e95c5476fae4","configType":"workbench"},{"meta":{"content":"## Spent Volume Age Bands\n\n---\n\nSpent Volume Age Bands (SVAB) is a metric that bundles spent coins into categories depending on their holding age. The metric presents relative color bands as a proportion of total coins moved. Each band represents the percentage of spent outputs that were created within the time period denoted in the legend.\n\n- 🟪🟥🟫 **Darker Colors** indicate volumes of older coins which have been held for several months, to many years.\n\n- 🟧🟨⬜ **Lighter Colors** indicate volumes of younger coins which have been held for hours, to a few months.\n\nHistorically, older coins tend to become more dominant during bullish trends (taking profits), and during high volatility events (sell-offs, capitulations, blow off tops etc). Conversely, younger coins represent the typical day-to-day network traffic.\n\n\u003e 💡 Hint: In Studio, additional insight may be obtained from [SVAB](https://studio.glassnode.com/metrics?a=BTC\u0026category=\u0026m=indicators.Svab) by turning off/on sub-sets of the legend to isolate particular age bands, and identify trends in older or younger coin spending."},"uuid":"c6e34432-51e8-4253-9e23-c72d30c098cd","extra":{"backgroundColor":"#ffffff"},"configType":"content"},{"meta":{"content":"## Old vs Young Coins Spent Volumes\n\n---\n\nThese charts present the following traces:\n\n- 🔴 **Spent Young Coin Volume** which represent coins which were held for a period shorter than 6-months. These are the dominant day-to-day traffic, and are indicative of broader trends in economic activity.\n\n- 🔵 **Spent Old Coin Volume** which represent coins which were held for a period longer than 6-months. These are typical of longer-term holders, and tend to be spent during bullish trends (profit taking), and high volatility events.\n\n- ⚫ **Ratio between Old and Young Spent Volume (%, 30D-EMA)** providing a macro scale oscillator to compare the economic activity of these cohorts.\n\nThese metrics can be used to identify, measure, and assess the cohorts of interest that are generating on-chain transaction volumes."},"uuid":"2ee13313-68c5-44b4-b47f-677aa82842c9","extra":{"backgroundColor":"#ffffff"},"configType":"content"},{"meta":{"refUuid":"c2dc5394-7069-4983-4771-7a13109c5fd6"},"uuid":"e6b46982-e53f-430e-a3d5-c60c9010fe3e","extra":{"zoom":"2y"},"configType":"workbench"},{"meta":{"refUuid":"584b2922-8a76-43a4-78ed-d675f1dcf61d"},"uuid":"2193e271-deff-411f-8d86-28c070400679","extra":{"zoom":"2y"},"configType":"workbench"},{"meta":{"content":"## Lifespan Analysis 🕰️\n\n---\n\nThe concept of Lifespan in on-chain analysis is unique to the discipline, and relies on calculating the time difference between when a coin was acquired, and when it is spent (the holding time, or lifespan). There are two metrics used to measure spent lifespan:\n\n- **[Coindays Destroyed (CDD)](https://academy.glassnode.com/indicators/coin-days-destroyed/cdd-coin-days-destroyed)** which is calculated as the BTC coin volume spent, multiplied by the time since the coin was last moved (units of BTC.days).\n\n- **[Dormancy](https://academy.glassnode.com/indicators/dormancy/dormancy)** which is the average age of coins spent that day (units of days). It is calculated as the total sum of CDD, divided by the total sum of BTC spent.\n\nBoth metrics have a similar interpretation framework:\n\n- ↗️ **Higher values and uptrends** indicate an elevated degree of older coin spending, and more lifespan destruction.\n\n- ↘️ **Lower values and downtrends** indicate a reducing volume of older coin spending, and less lifespan destruction.\n\n\u003e 💡 Hint: The concept of Lifespan is explored in more detail in this [Tutorial dashboard: An Introduction to Lifespan](https://studio.glassnode.com/dashboards/introduction-lifespan)."},"uuid":"05f8b1ac-e30f-48c3-aa1f-4134b5eb0836","extra":{"backgroundColor":"#ffffff"},"configType":"content"},{"meta":{"content":"## Realized Profit and Loss 💸\n\n---\n\nIn addition to timestamping coins to perform lifespan analysis, we can also pricestamp coins at the time they were last moved on-chain. This allows us to measure the magnitude of profit, or loss realized when they are spent.\n\n- 🟩 **Realized Profit** measures the total USD denominated value realized by coins **spent at prices above** the original acquisition price.\n\n- 🟥 **Realized Loss** measures the total USD denominated value realized by coins **spent at prices below** the original acquisition price.\n\nGenerally speaking, the dominance of Realized Profit or Loss tends to align with macro market trends, and can be expressed in the [Realized P/L ratio metric](https://studio.glassnode.com/metrics?a=BTC\u0026category=\u0026m=indicators.RealizedProfitLossRatio).\n\n---\n\n### Net Realized Profit/Loss\n\nWe can calculate the net realized profit/loss by subtracting realized losses from realized profits. This metric reflects the net change in capital inflow/outflow to the Bitcoin network each day, under the assumption that on-chain transactions reflect an acquisition/disposal."},"uuid":"b3a39802-47d9-4a21-8629-1728260cd4ed","extra":{"backgroundColor":"#ffffff"},"configType":"content"},{"meta":{"content":"## SOPR (Spent Output Profit Ratio)\n\n---\n\nThe SOPR indicator provides insight into macro market sentiment, profitability and losses taken over a particular time-frame. It reflects the degree of realized profit for all coins moved on-chain, and can be considered an **average profit multiple**.\n\n- **SOPR \u003e 1** implies that spent coins are realizing a profit (e.g. 1.25 means a 25% profit on average).\n\n- **SOPR \u003c 1** implies that spent coins are realizing a loss (e.g. 0.85 means a -15% loss on average).\n\n- **SOPR ~ 1** implies spent coins are at break-even, and often forms a support/resistance level as the market is at equilibrium.\n\n\u003e 💡 Hint: For more information and details about the application of SOPR, please refer to the comprehensive guide available on [Glassnode Academy](https://academy.glassnode.com/indicators/sopr/sopr-spent-output-profit-ratio)."},"uuid":"0dbcbed8-ddaa-46af-b7f4-2ed6637d6791","extra":{"backgroundColor":"#ffffff"},"configType":"content"},{"meta":{"asset":"BTC","currency":"native","metricCode":"indicators.SoprLess155","resolution":"24h"},"uuid":"c80a0eb9-a170-4e07-8c12-ec61501d6b3a","extra":{"zoom":"2y","price":true,"scale":"lin","lineColor":"#f7931a","chartStyle":"line"},"configType":"metric"},{"meta":{"asset":"BTC","miner":"aggregated","mathFn":{"name":"ema","value":"7"},"currency":"native","exchange":"aggregated","exchangeTo":"aggregated","metricCode":"indicators.SoprMore155","resolution":"24h","exchangeFrom":"aggregated","movingMedian":0,"movingAverage":0,"expMovingAverage":"7"},"uuid":"6406bfb4-e580-489d-b9fb-ef402fc054b0","extra":{"price":true,"scale":"log","lineColor":"#f7931a","chartStyle":"line"},"configType":"metric"},{"meta":{"content":"## Realized RVT Ratio\n\n---\n\nIn on-chain analysis, we can separate the notion of nominal value, and realized value when assessing transfer volumes. During periods of high volatility such as late stage bull / bear markets, it is common to observe periods of elevated **realized value**, as investors take profits at tops, or capitulate at lows. \n\nThe Realized Value RVT is an oscillator which is designed capture the relative magnitude between Realized Value, and Nominal Value Transferred.\n\n- **Nominal Volume** is a measure of the raw BTC or USD value transferred. Here we consider Change-Adjusted volume.\n\n- **Realized Volume** is a measure of the difference between the disposal, and acquisition price of a coin (also change-adjusted).\n\nThe Realized Value RVT is calculated as the ratio between aggregate Realized Value, and aggregate Nominal Value. In other words, Realized RVT compares the economic payload (Realized), to the total value transferred (Nominal).\n\n`Realized Value RVT = (Realized Profit + Realized Loss) / Transfer Volume (Change-Adjusted)`\n\nRealized RVT Ratio can generally be considered in the following framework:\n\n- ↗️ **Higher Values** indicate periods where net change in realized value is large relative to the aggregate nominal transfer volume. During bullish periods this indicates a large degree of profit taking is occurring, and increases the probability of oversupply. In a bear market, it can signify a capitulation event has taken place, whereby large realized losses were locked in relative to the total transfer volume.\n\n- ↘️ **Lower Values** indicate periods where the net change in realized value is small relative to the aggregate nominal transfer volume. This typically occurs when the majority of coins on the move, are being transacted at a very similar pricestamp to their original acquisition price (break-even), and thus realizing little net change in value. This is typical of late stage bear markets and early bull markets, where HODLing behaviour is at its peak, and  most on-chain volume is sourced from the set of already highly active supply.\n\nThe oscillator and barcode chart at the bottom provide additional information to gauge the dominant market trend.\n\n- **🟢 Where the [Realized P/L Ratio](https://studio.glassnode.com/metrics?a=BTC\u0026category=\u0026m=indicators.RealizedProfitLossRatio) \u003e 0.5** it indicates that Realized Profits exceed Realized Losses, which is typical of more constructive market trends.\n\n- **🔴 Where the [Realized P/L Ratio](https://studio.glassnode.com/metrics?a=BTC\u0026category=\u0026m=indicators.RealizedProfitLossRatio) \u003c 0.5** it indicates that Realized Losses exceed Realized Profits, which is typical of bearish market trends."},"uuid":"e118aceb-4c6e-492b-a639-2d237e27198f","extra":{"backgroundColor":"#ffffff"},"configType":"content"},{"meta":{"refUuid":"55895de9-36d8-4230-7453-ac5664c31010"},"uuid":"205be9d4-12a2-4452-9122-80524a5a1fa8","configType":"workbench"},{"meta":{"content":"## Sell-side Risk Ratio\n\n---\n\nThe Bitcoin Sell-Side Risk Ratio is calculated by taking the sum of all profits and losses realized on-chain, and dividing it by the realized cap. This metric therefore compares the total USD value that investors spending each day, to the total realized market capitalization.\n\nThis methodology quantifies the aggregate sell-side risk in the market. It assumes that all profit and loss realized on-chain are a potential source of sell-side pressure. Division by realized cap provides normalization over time as it will increase or decrease relative to changes in all-time capital inflows/outflows to the asset.\n\n\nThis metric provides a comprehensive story about market cycles:\n\n- ↗️ **High values** are associated with periods of high value realization, and relatively high market volatility. This is typical of late stage bull markets, and bear market capitulation events. This can signal an oversupply of coins, or a loss in investor conviction, and thus a relatively high risk environment.\n\n\n- ↘️ **Low Values** are associated with periods of low value realization, and relatively low market volatility. This is typical of market consolidation phases, and sideways market trends. This can signal macro market bottoms, accumulation phases and relatively low sell-side risk environments.\n\n\nIt can also be expected that upper and lower bound extremes will compress over time as the Bitcoin market matures, and as volatility decreases.\n"},"uuid":"677d6553-7b63-4d9d-bb17-e6c3e5ce0654","extra":{"backgroundColor":"#ffffff"},"configType":"content"},{"meta":{"content":"### Disclaimer\n\n---\n\n*This dashboard and associated content does not provide any investment advice. All data is provided for information purposes only. No investment decision shall be based on the information provided here and you are solely responsible for your own investment decisions. For for details, please refer to our [Terms and Conditions](https://studio.glassnode.com/terms-and-conditions).*"},"uuid":"d97bd696-e542-487a-b26c-b057679171a8","extra":{"backgroundColor":"#ffffff"},"configType":"content"},{"meta":{"refUuid":"22919b80-93e4-4c61-6d9e-fcedef3eecd1"},"uuid":"7370f2ed-5843-422d-9c26-da038c4f531a","extra":{"zoom":"5y"},"configType":"workbench"}],"layouts":[{"h":6,"i":"20d4e1bc-b0cf-460c-a816-57ec2b602e45","w":6,"x":6,"y":30,"minH":1,"minW":3,"moved":false,"static":false},{"h":6,"i":"2eadd14c-952a-493f-819b-b9851d4be052","w":6,"x":0,"y":30,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"786dd6fe-fa8a-444e-b0a8-22c14a7ebe34","w":8,"x":4,"y":64,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"44fbc03d-d225-4170-9409-4650d1e0b710","w":6,"x":6,"y":72,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"1bd90faf-0e9d-419d-a214-67133acded54","w":8,"x":4,"y":80,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"9e61e426-c132-487b-8455-3a978bd3c915","w":8,"x":4,"y":14,"minH":1,"minW":3,"moved":false,"static":false},{"h":6,"i":"41058555-8391-4eb6-bbb4-24a1043cf1c9","w":6,"x":0,"y":50,"minH":1,"minW":3,"moved":false,"static":false},{"h":6,"i":"05047794-e3f4-499c-9cf8-65389a41ee39","w":6,"x":6,"y":50,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"142b6a7b-3e03-416e-9d8f-1f579c695312","w":6,"x":0,"y":72,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"0aea6936-444c-4906-b58a-fd43d44bcf3c","w":8,"x":4,"y":42,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"c909e90e-15fe-4210-8742-6eb707b7cd9a","w":12,"x":0,"y":56,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"8e9d6d7b-01a9-4acf-9a05-2690536057b1","w":4,"x":0,"y":0,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"0a0c691e-3547-4b26-9706-899ffc3116fe","w":8,"x":4,"y":0,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"dcf8dca9-5f29-4534-a82a-5e83ce3bf337","w":8,"x":4,"y":22,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"61ddc239-68b8-469c-91a7-e95c5476fae4","w":8,"x":4,"y":94,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"c6e34432-51e8-4253-9e23-c72d30c098cd","w":4,"x":0,"y":14,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"2ee13313-68c5-44b4-b47f-677aa82842c9","w":4,"x":0,"y":22,"minH":1,"minW":3,"moved":false,"static":false},{"h":6,"i":"e6b46982-e53f-430e-a3d5-c60c9010fe3e","w":6,"x":0,"y":8,"minH":1,"minW":3,"moved":false,"static":false},{"h":6,"i":"2193e271-deff-411f-8d86-28c070400679","w":6,"x":6,"y":8,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"05f8b1ac-e30f-48c3-aa1f-4134b5eb0836","w":4,"x":0,"y":42,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"b3a39802-47d9-4a21-8629-1728260cd4ed","w":4,"x":0,"y":64,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"0dbcbed8-ddaa-46af-b7f4-2ed6637d6791","w":4,"x":0,"y":80,"minH":1,"minW":3,"moved":false,"static":false},{"h":6,"i":"c80a0eb9-a170-4e07-8c12-ec61501d6b3a","w":6,"x":0,"y":88,"minH":1,"minW":3,"moved":false,"static":false},{"h":6,"i":"6406bfb4-e580-489d-b9fb-ef402fc054b0","w":6,"x":6,"y":88,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"e118aceb-4c6e-492b-a639-2d237e27198f","w":4,"x":0,"y":94,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"205be9d4-12a2-4452-9122-80524a5a1fa8","w":8,"x":4,"y":102,"minH":1,"minW":3,"moved":false,"static":false},{"h":8,"i":"677d6553-7b63-4d9d-bb17-e6c3e5ce0654","w":4,"x":0,"y":102,"minH":1,"minW":3,"moved":false,"static":false},{"h":4,"i":"d97bd696-e542-487a-b26c-b057679171a8","w":12,"x":0,"y":110,"minH":1,"minW":3,"moved":false,"static":false},{"h":6,"i":"7370f2ed-5843-422d-9c26-da038c4f531a","w":12,"x":0,"y":36,"minH":1,"minW":3,"moved":false,"static":false}]}}