Glassnode, a crypto analytics firm, has observed signs of increased speculative activity in the Bitcoin (BTC) market following a period of consolidation. According to their latest report, new buyers and investors holding BTC for between six months and three years are currently sitting on unrealized profits.
The data indicates that only 0.03% of Long-Term Holders are experiencing losses, a characteristic of the early stages of a bull market. In the past two months, the Sell-Side Risk Ratio for both Long and Short-Term Holders has stabilized, pointing to a potential surge in volatility in the near future as most profits and losses within this price range have likely been realized.
The Sell-Side Risk Ratio is calculated by dividing the sum of all realized profits and losses on-chain by the realized cap, representing the value of each Bitcoin at its last movement rather than its current market value.
Glassnode also highlighted a recent market reaction to news about the movement of nearly $10 billion in BTC by bankrupt crypto exchange Mt. Gox. Despite initial concerns about a potential liquidation, former Mt. Gox CEO Mark Karpelès clarified that the transfers were part of preparations for a distribution expected later in the year.
Investors are reminded to conduct thorough research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. All transfers and trades are made at individual risk, and losses incurred are the responsibility of the investor. The Daily Hodl does not provide investment advice or recommend the buying or selling of any cryptocurrencies or digital assets.
