Long-Term BTC Holders Slow Down Profit Taking, Sell-Side Risk Drops

BTC's sell-side risk has dropped to its lowest level in over a month, according to data from analytics firm Glassnode. The Sell-Side Risk Ratio, which measures on-chain profits and losses relative to realized capitalization, fell to 7 basis points per day on September 9.

This is down from the August peak of 16 basis points, representing a decrease of 56%. Long-term holders have been taking fewer profits, contributing only 47% of realized profit compared to 88% in August. This shift suggests that older holders are holding onto their coins rather than selling them.

A large block of BTC, approximately 1.07 million, remains parked above market value. These coins were acquired between $83,000 and $86,000, and it appears that long-term holders have not been selling these assets in significant quantities. Despite this, aggressive exchange selling still outweighs buying, indicating a supply-demand imbalance.

The data from Glassnode paints a picture of a market where long-term holders are holding onto their coins, but the sell-side risk remains a concern. A sustained advance for BTC would require buyers to absorb the supply that actually comes to market, rather than just holding onto existing assets.