Bitcoin’s sell-side risk ratio has reached all-time lows, indicating that a significant move could be on the horizon for the cryptocurrency. Glassnode’s lead on-chain analyst highlighted the trend in a tweet, explaining that the sell-side risk ratio measures the ratio between profits and losses in the Bitcoin market and the realized cap. The realized cap is a capitalization model that calculates the “true” value of the cryptocurrency by assuming that each coin in the supply is not worth the same as the current spot price, but rather the price at which it was last moved. When the sell-side risk ratio is high, it means investors are realizing a high amount of profit/loss, indicating a high-risk market. In contrast, low values imply that holders are reluctant to sell, indicating a calmer market where accumulation tends to occur. The current low value of the indicator suggests a lack of sellers in the market, potentially signaling a bullish sign. However, past trends have shown that both bullish and bearish price action can occur following this pattern. At the time of writing, Bitcoin is trading at around $26,100, down 2% in the last week.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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