The world's first cryptocurrency $Bitcoin(BTC.CC)$ 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.
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.
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."
- Glassnode wrote.
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."