Bitcoin circulating velocity is the total amount of coins moved in a year divided by the total supply, and is an indicator of how fast coins are circulating in the market.

In the past cycles, we have seen an increase in circulation velocity before a full-fledged bull run. This is because large-scale turnover among whale investors occurred on-chain, amplifying the volume of Bitcoin transfers.

However, velocity hasn't changed much recently. This is due to the uncertainty of the US presidential election and macroeconomic conditions, which are discouraging large whale investors from entering the crypto market.

On the positive side, the supply of stablecoins is continuously increasing. If the aforementioned negative external factors are resolved, the possibility of a bullish rally is high.

Written by MAC_D