Bitcoin (BTC) Sell Side Risk Ratio At All-Time Low, Big Moves Ahead

Bhushan Akolkar
May 24, 2023
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Bitcoin Outflow Grayscale

On Tuesday, May 23, the world’s largest cryptocurrency Bitcoin (BTC) came under some selling pressure and is currently trading 2.32% down at a price of $26,748 with a market cap of $518. Over the last few weeks, the weekly trading volumes for Bitcoin and crypto have touched their historic lows.

As of now, investors remain confused as to where is Bitcoin heading from here. On-chain data, however, shows some optimism on the charts. Checkmate, the lead on-chain analyst at Glassnode recently reported that Bitcoin’s sell-side risk ratio has touched an all-time low.

This shows that investors have been reluctant to spend their Bitcoins, either in profit or loss, within the current price range. Typically, this happens when sellers get exhausted on both sides, suggesting that big moves are coming ahead.

Courtesy: Glassnode

Furthermore, on-chain data from Glassnode also shows that as trading volumes and liquidity decline across the crypto market, volatility is around the corner. “With price ranges compressed, and on-chain transfers at cycle lows, $BTC is unlikely to sit still for very long,” it adds. 

Bitcoin Exchange Inflows

Glassnode explains that major Bitcoin inflows at the exchanges are at their cyclical lows of $1.65 billion. This is the lowest value since the start of the primary bull market. This large compression in the exchange inflows typically hints that “structural market liquidity remains extremely low”.

This could be probably due to major market makers like Jane Street and Jump Crypto recently decided to exit the US market citing a lack of regulatory clarity. “With an increasingly illiquid market, with very thin order books, the likelihood of market volatility largely increases,” notes Glassnode.

Courtesy: Glassnode

After a strong rally earlier this year, Bitcoin has failed to break past the $30,000 level on the upside. Since then, it’s been under constant selling pressure so far. It will be interesting to see whether manages to hold $27,000 or slips further from here.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.