Bitcoin holders are showing strong resolve, with minimal selling pressure at current price levels, even as Bitcoin inches closer to its all-time high. On-chain data reveals that sell-side risk has dropped to its lowest point in 2024, indicating that sellers are in no rush to offload their holdings.
Bitcoin Sell-Side Risk Enters “Minimal Zone”
Despite recent bouts of price volatility, Bitcoin has seen very few large-scale sell-offs. Data from CryptoQuant shows a significant drop in potential sellers, suggesting most investors are holding firm. According to Axel Adler Jr., a contributor to CryptoQuant, the number of would-be sellers has drastically decreased since Bitcoin’s $73,000 peak earlier this year.
Adler explained that the sell-side risk ratio, which calculates selling pressure by measuring on-chain realized profits and losses relative to Bitcoin’s realized cap, has plummeted. Currently, this metric is below 20,000, a stark contrast to the nearly 80,000 recorded during March’s price high. This drop places Bitcoin’s sell-side risk in what Adler calls the “minimal zone.”
Network Activity Remains Strong Despite Lower Selling Pressure
While the number of potential sellers has decreased, Bitcoin’s network activity continues to remain healthy. On-chain profit and loss data shows that Bitcoin still generates around $500 million in daily profits. Although this is lower than the $3.6 billion in profits seen during Bitcoin’s March peak, it is still a positive indicator of ongoing network activity.
Adler noted that investors are realizing approximately $571 million in daily profits, while losses are much lower, around $115 million. This leads to a net daily profit of around $456 million, proving that the Bitcoin network is far from “dead.”
Bitcoin Price Support Sees Recovery
A critical factor influencing Bitcoin’s price stability is the cost basis of different investor cohorts. Short-term holders (STHs), often more speculative in nature, have returned to profitability after months of uncertainty. Many of these investors were previously selling at a loss, but with Bitcoin’s recent price recovery, they are now seeing gains.
According to data from BGeometrics, the cost basis for short-term holders currently sits around $62,250. With this group back “in the black,” market conditions are stabilizing. In a recent analysis, The Bitcoin Researcher described the current state of short-term holder activity as “pivotal,” indicating a crucial phase for the market.
Conclusion
Bitcoin’s sell-side risk has reached its lowest level in 2024, reflecting minimal selling pressure as the price approaches previous highs. The network remains strong, with consistent profits being realized by investors. As short-term holders return to profitability, Bitcoin is showing signs of resilience, setting the stage for potential further price gains in the near future.
