Definition. Dormancy Flow is the ratio of the current market capitalization to the annualized dormancy value (measured in USD).

Interpretation. The metric can be used to time market lows and to assess whether a bull market remains in relatively normal conditions, helping confirm whether an asset is in a bullish or bearish primary trend.

Notes. Put forward by David Puell. For more information, see his introductory article.

This is the Point-in-Time (PiT) variant of Dormancy Flow. PiT metrics are strictly append-only and their history is immutable. The historic data does not necessarily reflect the best current knowledge, but the information at the time when a data point was first computed. PiT metrics are ideal candidates for applications in model backtesting and related quantitative purposes. Read our article on PiT metrics for more information.