Bitcoin Long-Term Holders Slow Down Profit Taking, Sell-Side Risk Plunges

Bitcoin's on-chain sell-side risk has reached its lowest level in a month, according to analytics firm Glassnode. The Sell-Side Risk Ratio, which measures potential selling pressure by dividing on-chain profits and losses by realized capitalization, fell to 7 basis points per day on a seven-day basis as of September 7. This is down from the August peak of 16 basis points.

Long-term holders are also contributing less to the market's realized profit, with their share dropping from 88% in August to 47% as of September 7. The report notes that a large block of older coins, totaling around 1.07 million BTC acquired between $83,000 and $86,000, remains largely unchanged over the past 30 days.

While this suggests that long-term holders are slowing down their profit-taking, it does not necessarily mean that the volume of Bitcoin sold on exchanges has decreased. The report also notes that exchange demand is a separate test, and negative spot flow in September 8 indicates that aggressive selling still outweighs aggressive buying in this metric.