Originally published on: September 25, 2024
Bitcoin’s selling pressure has drastically decreased, with data indicating minimal sell-side risk as BTC hovers close to its all-time high levels.
Decline in Sell-Side Risk
According to a recent analysis by CryptoQuant, the sell-side risk for Bitcoin has hit its lowest point since the beginning of 2024. Despite recent price fluctuations, potential sellers have significantly dropped since the peak of $73K earlier this year.
Sell-Side Risk Ratio Analysis
The sell-side risk ratio, which factors in on-chain realized profits and losses, divided by Bitcoin’s realized cap, paints a clear picture of potential selling pressure. Currently, this metric is showing values below 20,000, a stark contrast to the nearly 80,000 seen during the peak in March.
Healthy Network Activity
Despite the decrease in sell-side risk, Bitcoin’s on-chain realized profit and loss figures still demonstrate a daily net tally of around $500 million. This figure, though lower than the record in March, showcases the resilience and activity within the Bitcoin network.
Bitcoin Investor Cohorts
The cost basis of various Bitcoin investor groups has a significant impact on price dynamics. Short-term holders, in particular, have shown resilience and are currently in a favorable position with a cost basis around $62,250. This group has recently been distributing their holdings, often at a loss, influencing market dynamics.
The Pivotal State of the Market
Analyzing the current composition of short-term holder entities’ BTC exposure, experts describe the market as being in a pivotal state. This ongoing shift in holdings and behavior among investor groups adds further complexity to BTC price movements.
Conclusion
As Bitcoin continues to showcase strong network activity and decreasing sell-side risk, investors are closely monitoring market dynamics for potential price movements. It is essential for readers to conduct their own research and evaluate risks before making any investment decisions. Stay informed to make informed choices in the dynamic world of cryptocurrency.
