Sell-Side Risk Returns to Rare Lows for Bitcoin

Bitcoin's sell-side risk ratio has fallen to historic lows, according to new data from Glassnode. The metric, which measures the US dollar value of realized profits and losses relative to Bitcoin's realized market cap, has dropped to 7, down from a high of 16 in September when the price reached multimonth highs above $80,000.

This represents one of the lowest readings on record, with only a small share of days in the past year running lower. Glassnode describes lower values as signals of 'macro market bottoms, accumulation phases and relatively low sell-side risk environments.'

The data also shows that long-term holders, defined as wallet entities that hold a UTXO without spending it for at least six months, are realizing profits onchain at a lower rate this month. Long-term holders' share of realized profit has fallen to 47% from 88% at the August peak.

Glassnode notes that 'the sellers this month are recent buyers, and even they are selling less.' This may ease concerns that a modest Bitcoin price correction could trigger panic selling.