Bitcoin’s sell-side risk has fallen to one of its lowest levels on record as profit-taking cooled in September and investors continued to hold most of the cryptocurrency’s gains from August.
According to data from crypto analytics firm Glassnode, Bitcoin’s sell-side risk ratio (SSRR) fell to 7 in September from 16 in August, placing the metric among its lowest-ever readings.
Bitcoin gained around 25% in August, but the price recovery was accompanied by relatively limited selling activity. Glassnode said the August rebound had drawn only a small amount of supply based on on-chain activity.
The SSRR measures realized profits and losses relative to Bitcoin’s realized market capitalization. Lower readings generally indicate reduced selling pressure and can be associated with accumulation phases and periods of lower market risk.
The metric reached 16 when Bitcoin climbed above $80,000 in late August. It has since more than halved to 7, indicating that selling pressure has eased significantly.
Glassnode also reported a decline in profit-taking among long-term Bitcoin holders. Their share of realized profits fell to 47% from 88% at the August peak.
The analytics firm noted that the realized profit spike recorded on September 3 was less than half the size of the spike seen in August, suggesting that investors were becoming less willing to sell.
“Even recent buyers are selling less,” Glassnode said in its latest weekly on-chain report.
Bitcoin’s lower sell-side risk could reduce concerns that a modest price correction would trigger widespread panic selling.
However, US spot Bitcoin ETF investors remain below their aggregate breakeven level. According to Glassnode, Bitcoin would need to reach around $86,000 for these investors to return to aggregate profit.
Bitcoin has remained below that level for 229 sessions, leaving ETF investors with estimated paper losses of around $3.9 billion.
Meanwhile, Bitcoin’s spent output profit ratio (SOPR) has remained above the breakeven level of 1 for an extended period. A sustained SOPR reading above 1 indicates that coins are generally being spent at a profit.
The latest on-chain data suggests that Bitcoin investors are currently showing limited signs of panic selling, despite the cryptocurrency remaining below the $86,000 level needed to restore aggregate profitability for US spot ETF holders.
