The world's first cryptocurrency Bitcoin (CRYPTO: BTC) had a couple of bad months, which recent on-chain data analysis revealed that Bitcoin addresses in profit recently reached nearly 55.7% — which means most are profiting, but it is a two-year low nonetheless.
What Happened: On-chain data-based metric reserve risk paints a ray of hope into Bitcoin's currently gloomy market. According to data shared in a Tuesday tweet by an account of Glassnode dedicated to sharing findings of the blockchain data firm, Bitcoin's reserve risk reached an all-time low of 0.000024.
📉 #Bitcoin $BTC Reserve Risk (7d MA) just reached an ATL of 0.000024
— glassnode alerts (@glassnodealerts) June 21, 2022
View metric:https://t.co/qNLjuk1sxH pic.twitter.com/ugdbGPDaWI
See Also: How To Earn Free Crypto
Why It Matters: The reserve risk is defined as the confidence of long-term Bitcoin holders relative to the price of the coin at any given time. When the confidence is high and the price is low, this sends a strong buy signal for long-term traders and investors.
Glassnode wrote that "Reserve Risk is low when HODLer conviction is high, unspent opportunity cost is increasing, and price is low and thus, there is an attractive risk/reward to invest."
Currently, the reserve risk is deep into the green zone, so deep that it has not been this low ever before. Look Into Bitcoin claims:
"Investing in Bitcoin during periods where Reserve Risk is in the green zone has produced outsized returns over time."
