Bitcoin Selling Pressure Drops to Historic Lows Amid Rebound

Bitcoin (CRYPTO: $BTC)’s sell-side pressure has fallen sharply in September, with long-term holders and recent buyers showing less appetite to take profits even as the cryptocurrency remains below its recent highs.

In a recent report, crypto analytics firm Glassnode said Bitcoin’s sell-side risk ratio (SSRR) fell to 7 this week from 16 in September, putting the measure among its lowest readings on record.

The SSRR tracks realized profits and losses onchain relative to Bitcoin’s realized market capitalization. Lower readings typically point to periods of reduced selling activity and can appear during accumulation phases or near broader market bottoms.

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The metric reached 16 as Bitcoin climbed above $80,000 in late August. But the rally did not trigger a major wave of coins moving back into the market.

Glassnode said the August rebound “drew little supply,” with long-term holders accounting for a much smaller share of realized profits in September. Their share fell to 47% from 88% at the August peak.

“A sustained move back above 16 basis points would say the August-sized sellers have returned; until then the spot market is short of sellers at these prices,” Glassnode said.

Meanwhile, ETF investors remain underwater. Glassnode estimates that US spot Bitcoin exchange-traded fund buyers would return to aggregate breakeven around $86,000. Bitcoin has closed below that level for 229 sessions, leaving the cohort with roughly $3.9 billion in paper losses.

The crypto market rebounded on Wednesday, with Bitcoin recovering toward $80,000 after falling to about $77,600 in the previous session. Ethereum (CRYPTO: $ETH) held around $2,500, while XRP (CRYPTO: $XRP), Solana (CRYPTO: $SOL), BNB (CRYPTO: $BNB), Dogecoin (CRYPTO: $DOGE) and Cardano (CRYPTO: $ADA) also gained.

Simon-Peter Massabni, head of business development at XS.com, told Cryptoprowl that the recovery faces a difficult macroeconomic backdrop. Strong US labor data has increased expectations of another Federal Reserve rate hike, while Brent crude has climbed above $100 a barrel amid rising Middle East tensions, raising fresh inflation concerns.

Source: finance.yahoo.com