Bitcoin's circulating velocity, a key metric indicating the speed at which coins move through the market, is calculated by dividing the total amount of coins moved in a year by the total supply. Historically, an uptick in this velocity has preceded major bull runs, driven by significant on-chain activity from whale investors.

Currently, the velocity remains relatively unchanged due to uncertainties surrounding the US presidential election and macroeconomic conditions, which deter large-scale investments. However, the increasing supply of stablecoins presents a positive outlook. Should these external factors stabilize, the potential for a bullish rally remains strong.