As the price of digital assets continues to fall, investors in bitcoin (BTC) are embracing a behavior that makes it possible to imagine a way out of the crisis. In fact, the data collected by Glassnode indicates that they are trying to hold their stock until the digital asset recovers in value again. But beware, the “reserve risk” indicator must be taken into account !
Bitcoin Reserve Risk falls below 0.002
Glassnode recently published a new report on the evolution of BTC and investor behavior towards the cryptocurrency. To design it, the group relied on a bitcoin “reserve risk” (BTC) indicator. It is a cyclical indicator on a chain serving measuring the confidence of cryptocurrency users long-term taking into account the current price.
The instructions for using this indicator are relatively easy to understand. When investor confidence in cryptocurrency is high, but the price is low, it means that the reserve risk reflects low values. That is precisely what is happening now.
In general, when this situation occurs, the risk / reward ratios are disadvantageous for investors. Also, BTC is usually lowered out some time after minimum “reserve risk” values have been shown.
In 2022, when the “reserve risk” has worn off below 0.002 for the first time at the beginning of January, the bottom of BTC was reached in the same month. For then, the price of cryptocurrency was to $ 35,036 and in November 2021, it had reached an all-time high.
The current situation of the bitcoin (BTC) “reserve risk” indicator (BTC) is of great concern to investors and professionals. For good reason, this indicator seems to rise dark times.
Get a summary of the news in the world of cryptocurrencies by subscribing to our new daily and weekly newsletter service so you don’t miss any of the essential Cointribune!
Behind the generic “Redaction CT” signature are young journalists and authors with specific profiles who wish to remain anonymous because of their connection to the ecosystem and certain obligations.