• A low Reserve Risk implied that prices were low and HODLer confidence was high. 
• Long-term holders store nearly 75% of all Bitcoins in circulation.

Crypto circles have been flooded with speculations on Bitcoin’s [BTC] next moves from the ongoing rangebound price movement. For context, after ripping to yearly highs during June’s market rally, the king coin has bored market participants, meandering in a narrow zone between $29,000-$31,000.

Is your portfolio green? Check out the Bitcoin Profit Calculator

A lot of expert analyses have attributed the lull to investors’ growing inclination to HODL coins rather than liquidate them for gains. However, it begs the question – Will the increased hoarding mentality eventually lead to an increase in the economic value of Bitcoin?

Bitcoin in early bull market?

According to an on-chain analysis tool Glassnode, the 7-day average of Bitcoin’s Reserve Risk indicator fell to a one-month low. A lesser-used but reliable metric, Reserve Risk comes in handy in measuring Bitcoin’s long-term growth potential.

The choice to purchase a Bitcoin was backed by the confidence of the existing and future participants. The more existing participants defer spending their coins, the stronger their belief in Bitcoin’s future prospects.

Glassnode defines Reserve Risk as basically the risk/reward ratio Go to Source to See Full Article
Author: Aniket Verma

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