Short-term Bitcoin (BTC) holders are unwilling to sell their BTC amid the ongoing crypto market doldrums, according to the analytics firm Glassnode.
In a new YouTube video, 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.
Glassnode says by and large, short-term holders aren’t spending right now, regardless of whether they’re in profit or they bought the local top.
“We are probing to all-time lows [in this metric]. Again, in early history, we can generally ignore this. We have to go back to 2014/2015, but really this is pretty much an all-time low in short-term holders’ desire to spend. Coins simply are not being revalued. So these low values are telling us, alongside the Bollinger bands, there’s a high probability that investors are exhausted with this price range and they need something to change to motivate them to spend.”
Bollinger bands (BB) measure an asset’s price and volatility oscillation over time.
Bitcoin is trading at $28,593 at time of writing. The top-ranked crypto asset is down by more than 2% in the past 24 hours.
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