Definition. The supply held in investor-controlled addresses, split across five behavior-based cohorts: Conviction Buyers, Momentum Buyers, First Buy, Loss Sellers and Profit Takers. Each address belongs to exactly one cohort at a time, decided by its most recent change in balance, and its entire balance is counted in that cohort. The five cohorts together account for all of the supply the metric covers.

Cohorts. Each cohort compares the price of the latest transaction against the address's cost basis, the average price it paid for the coins it holds. Conviction Buyers bought at or below their cost basis and lowered it, typically accumulating into weakness. Momentum Buyers bought above their cost basis and raised it, typically buying into strength. First Buy covers addresses acquiring coins for the first time, with no earlier cost basis. Loss Sellers sold below their cost basis, realizing a loss. Profit Takers sold at or above their cost basis, realizing a gain.

Interpretation. An address moves to a new cohort with its whole balance, not with the amount it transacted. A wallet holding 1,000 coins that sells 1 coin below its cost basis moves the remaining 999 into Loss Sellers. This is deliberate: the metric measures how much supply sits with holders who have started to act a certain way, on the basis that the rest of their balance is exposed to the same behavior. A cohort can therefore grow or shrink by far more than the amount actually bought or sold.

Technical. Exchange balances are excluded, together with burn addresses and addresses that belong to the protocol itself, so the series reflects investor behavior only. For Bitcoin the analysis is performed at the entity level rather than the address level, grouping addresses that belong to the same user.