Bitcoin [BTC] has been becoming harder to ignore as it saw adoption from finance giants from the traditional realm. The crypto-asset’s price was found to be stabilized within the range of $54k-$61k. The uncertainty surrounding the weekend plunge has intensified, however, is it still an attractive bet with room for more uptrend.
This was according to the latest edition of the weekly report by the blockchain intelligence platform, Glassnode. Bitcoin’s “reserve risk” was currently found to be at 0.008. This metric essentially measures the risk-reward ratio of investment based on long-term HODLers’ confidence relative to the price at any given point of time.
Bitcoin Entering ‘Later Stages’ Of A Bull Market?
According to Glassnode, past cycle tops have generally transpired at values greater than 0.02 and the current figure also stands way above it. The report also found that the “wealth transfers” among long-term bitcoin holders to newer speculators have also picked up. This was was reminiscent of past market peaks.
As big bagholders of Bitcoin increasingly spend their coins to realize profits, this is when the bull market reaches the “euphoric top”. Despite the fact that Bitcoin redistribution from long-term buyers to new buyers has indeed transpired this season, a relatively large portion of supply is still being held by long-term HODlers.
Glassnode reported that this cohort has spent a mere 9% since the potential “Peak HODL point”. Bitcoin’s latest bull market started almost a year ago. This was after the reserve risk slid into the buy zone [or the green area as depicted by the chart] below 0.002. The crypto-asset has climbed new heights rallying over 10-fold along the way.
The risk-reward ratio will not be alluring any more once the metric reaches the red zone above 0.02.
The bull market is not over yet and the on-chain metrics indicated conditions that are similar to the second half or later stages of a bull market.
Along the same line, Jeff Rose, who happens to be the founder and CEO of Valishire Capital, stated that the incentive for long-term Bitcoin hodlers to sell is still relatively low when compared to previous bull markets. Meaning, that the indicator is not done yet and has a long way ahead, especially with respect to the cryptocurrency’s price.