Glassnode: Multiple Bitcoin Indicators Reveal Risk Signals as Long-term Holders Begin to Cash Out

Glassnode: Multiple Bitcoin Indicators Reveal Risk Signals as Long-term Holders Begin to Cash Out

Glassnode: Multiple Bitcoin Indicators Reveal Risk Signals as Long-term Holders Begin to Cash Out

Blockchain analysis firm Glassnode said on Friday (15th) that nine out of ten risk indicators measuring the risk status of the Bitcoin market showed very high risk signals.

One of the indicators showing high-risk signals is the “Supply Profitability State” indicator, which measures the proportion of tokens with a cost basis lower than the current market price. Glassnode stated that the current proportion of this indicator is 99.3%, indicating that the current Bitcoin price is “in an extremely high-risk stage, which first appeared in this cycle 94 days ago.”

Another indicator that shows high risk is the “Net Unrealized Profit/Loss” indicator (NUPL), which reflects the state of market sentiment. Currently, its reading is 0.64, which means that the market is in a euphoric state.

During periods of high prices and high market sentiment, people usually shift their attention to long-term holders and those who are less inclined to spend their tokens. Glassnode’s Spending Binary Indicator for long-term holders shows the timing of this specific group increasing their spending behavior on the chain. Analysts pointed out that “this period of extremely high risk (red part below the picture, long-term holder spending rate heating up as the price reaches the most recent new high) began 11 days ago.”

The only indicator still at a low level is the Miners fee revenue binary indicator, which measures the proportion of days in the previous month where there was increasing daily pressure in the miner fee market.

Data source: Glassnode