Bitcoin Sell-Side Risk Reaches Record Low in 2024

Bitcoin sellers are showing restraint, withholding their assets at current price levels even as a portion of long-term holders returns to profitability.

Sell-Side Risk at Its Lowest Point

According to data from the on-chain analytics platform CryptoQuant, the sell-side risk for Bitcoin has reached its lowest level since the beginning of 2024. Despite occasional sell-offs amid recent price fluctuations, the overall willingness to sell has significantly decreased.

• CryptoQuant contributor Axel Adler Jr. noted that the number of potential sellers has fallen dramatically since the March peak of BTC/USD.
• The sell-side risk ratio, which measures on-chain realized profits and losses against Bitcoin’s realized capitalization, indicates the selling pressure currently stands below 20,000.
• This is a stark contrast to nearly 80,000 during the price peak in March.

Healthy Network Activity

Accompanying data reveals that despite the low sell-side risk, the Bitcoin network remains active. On-chain realized profit and loss data shows an approximate net daily profit of $500 million, although this is a fraction of the $3.6 billion noted during the March highs.

• On average, Bitcoin generates approximately $571 million in profits daily against $115 million in losses.
• The net average profit that investors are experiencing is around $456 million per day.

Bitcoin Price Support Dynamics

The collective cost basis of various Bitcoin investor segments is crucial in establishing support and resistance levels for Bitcoin’s price. Currently, short-term holders (STHs) are in a profitable position after a prolonged period of uncertainty.

• The current cost basis for STHs hovers around $62,250, according to data from BGeometrics.
• A social media account focused on Bitcoin research has indicated that the current landscape of STH exposure is in a critical phase.

This content is for informational purposes only and does not constitute investment advice. It is essential for readers to conduct their own research before making any investment decisions.