How do you calculate bitcoin velocity?

Could you elaborate on the process of calculating bitcoin velocity? As a professional in the field of cryptocurrency and finance, I'm curious to understand the methodology behind this metric. Bitcoin velocity essentially measures the rate at which bitcoins are exchanged or spent. I'm interested in knowing how one determines the total value of bitcoin transactions over a given period, divides it by the average number of bitcoins in circulation during that same period, and arrives at the velocity figure. Could you break down the steps involved in this calculation and provide any insights into how it can be used to analyze the health and momentum of the bitcoin economy?