In the fluctuating world of Bitcoin, a specific metric silently predicts the market's next move โ the sell-side risk ratio, a nuanced measure comparing daily investor activity against Bitcoin's total market capitalization. The metric has recently hit levels not seen since March 2021. This surge came after an impressive price jump from $45,330 to $73,104, catching the eye of savvy investors. But what does this significant increase in the sell-side risk ratio signify for Bitcoin's future? Could this be the start of a new bull cycle, or is the market teetering on the edge of a volatility spike? The answer lies in the intricate dance between profit realization and market maturity.
Sell-side risk ratio hit 3-year high as Bitcoin broke above $73k Sell-side risk ratio hit 3-year high as Bitcoin broke above $73k
Bitcoin saw significant value realization as it broke $73,000 last week, breaching the 0.75% sell-side risk threshold.
2 min read
Updated: Mar. 28, 2024 at 9:20 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
