AVIV Ratio • Active vs Investor Value
A flow-of-funds lens for Bitcoin. AVIV contrasts on-chain capital in motion with investors’ aggregate cost basis, highlighting frothy phases vs washed-out opportunity.
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What AVIV measures. AVIV (Active Value ÷ Investor Value) compares two on-chain aggregates:
capital tied to coins that are currently moving (a proxy for “money in motion”) versus investors’ realized capitalization
(an estimate of the total cost basis held by the market). The ratio shows how much of Bitcoin’s capital base is actively
churning vs. sitting in hands that have paid for and are holding coins.
How to read it. Elevated readings—around 2.5× and above —tend to appear near overheated phases,
when a large share of capital is rotating through the market. Depressed readings—near 0.55× or lower —often line up with
capitulation or early-accumulation conditions, when relatively little capital is in motion compared with what investors have
committed. We plot AVIV with heat bands and a short moving-average to reduce day-to-day noise.
Use case. AVIV isn’t a timing tool by itself; it’s a context gauge. Pair it with trend and liquidity
dashboards (e.g., Risk Matrix, Net Liquidity Z) to distinguish a healthy expansion from late-cycle euphoria or to spot
washed-out environments that may precede recoveries.