Bitcoin Holders Unwilling to Sell Despite Crypto Market Doldrums18. August 2023
• Bitcoin holders are unwilling to sell their BTC despite the current crypto market doldrums.
• Glassnode has measured an on-chain indicator showing this trend, called the Bitcoin Short-Term Holder Sell-Side Risk Ratio.
• The metric takes into account all profits and losses realized on-chain in that cohort and divides it by its realized cap, showing an all-time low in short-term holder desire to spend.
Bitcoin Holders Unwilling To Sell
Bitcoin (BTC) holders are unwilling to sell their BTC amid the ongoing crypto market doldrums, according to analytics firm Glassnode. The firm looks at the Bitcoin Short-Term Holder Sell-Side Risk Ratio, a metric that analyzes the amount of BTC that has moved in the past five months.
The metric takes the sum of all profits and losses realized on-chain in that cohort and divides it by its realized cap, which represents the value of each Bitcoin when it last moved rather than its current market value. By and large, short-term holders aren’t spending right now, regardless of whether they’re in profit or bought at the local top. This is evidenced by an all time low for this metric.
Bollinger Bands Measurement
Bollinger bands (BB) measure an asset’s price and volatility oscillation over time. The band can tell us when investors are exhausted with a particular price range as seen with this measurement for BTC currently trading at $28,593 at time of writing with a 2% drop in 24 hours.
Glassnode Analysis Summarized
Glassnode’s analysis shows short term bitcoin bulls are unwilling to sell their BTC despite current market conditions as measured by metrics such as Bollinger Bands (BB) measuring price oscillation over time and also taking into account profit/losses from on chain activity looking back 5 months from now which showed an all time low for this particular indicator.
Overall there seems to be evidence suggesting investors may need something new to motivate them out of their current state before any sort of significant movement will take place in terms of selling off or buying more bitcoin or other digital assets for that matter