Bitcoin's sell-side risk ratio has fallen to historic lows, indicating diminished selling pressure as the cryptocurrency market stabilizes following August gains.
According to Glassnode's analysis, Bitcoin's sell-side risk ratio (SSRR) dropped to 7 this week, down from 16 when Bitcoin's price peaked above $80,000 in late August. The metric measures the total onchain realized profits and losses divided by Bitcoin's realized market cap, offering insight into the dollar value of transactions relative to overall market capitalization.
Lower SSRR readings typically signal accumulation phases and reduced selling activity. Glassnode noted that the August price rebound "drew little supply" based on onchain metrics, with the current reading among the lowest on record.
Reduced Selling Across Market Participants
Long-term Bitcoin holders—defined as wallet entities holding unspent coins for at least six months—have reduced profit-taking activity in September. Their share of realized profits fell to 47% from 88% at August's peak, according to Glassnode data.
The analytics firm observed that "recent buyers" account for most current selling activity, and even they are selling less than previous cycles. September's realized profit spike on September 3 was less than half the size of August's spike.
ETF Investors Waiting for Breakeven
US spot Bitcoin exchange-traded fund investors face a higher threshold for profitability. ETF buyers would return to aggregate profit at $86,000, a level Bitcoin has closed below for 229 consecutive sessions. Current paper losses for ETF investors stand at approximately $3.9 billion.
The reduced sell-side risk environment may limit the downside pressure from panic selling if Bitcoin's price experiences a modest correction, as fewer market participants are showing urgency to liquidate positions.
