Bitcoin (BTC) has flashed “glimmers of speculative activity” after consolidating for a couple of months, according to the crypto analytics firm Glassnode.
In a new analysis, Glassnode notes that new buyers and investors who have held BTC between six months and three years are holding unrealized profits.
“This observation is bolstered by the fact that only 0.03% of the Long-Term Holders are in a position of loss, which is typical of the early euphoric phase of a bull market.
Over the last 2-months, the Sell-Side Risk Ratio for both Long and Short-Term Holders has reset and returned to an equilibrium. This suggests that a majority of profit and loss which was likely to be taken in this price range, has been, and hints to an increased risk of substantial volatility in the near future.”
The sell-side risk ratio takes the sum of all profits and losses realized on-chain and divides that by the realized cap, which represents the value of each Bitcoin when it last moved rather than its current market value.
Source: Glassnode/X
Glassnode also notes that the market reacted to a “false alarm” last month after the news broke that bankrupt crypto exchange Mt. Gox rearranged nearly $10 billion in BTC.
Mt. Gox moved roughly $9.66 billion worth of BTC to three newly created wallets in four batches per address.
While there was initial worry that the exchange was considering liquidating its coins, former Mt. Gox CEO Mark Karpelès clarified on the social media platform X that the coin movements were only preparations for a distribution likely to happen later this year.
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