Bitcoin Sell-Side Risk Hits 2024 Low Amidst Rising Prices, Minimal Seller Activity

Bitcoin sell-side risk is at its lowest since the start of 2024, with minimal selling pressure despite BTC hovering near all-time highs. Data shows that sellers are hesitant, even as Bitcoin holders return to profit.

Bitcoin (BTC) sellers are showing unprecedented restraint, with sell-side risk reaching its lowest point of 2024, even as the cryptocurrency approaches just 15% shy of its all-time price highs. According to data from the on-chain analytics platform CryptoQuant, the number of Bitcoin holders willing to sell has significantly declined, marking a pivotal moment for the market.

Minimal Sell-Side Risk as Bitcoin Price Nears Record

The sell-side risk ratio, which measures potential selling pressure by analyzing daily on-chain realized profits and losses relative to Bitcoin’s realized market capitalization, has dropped to its lowest levels since March. CryptoQuant contributor Axel Adler Jr. highlighted that the sell-side risk has collapsed dramatically, even as Bitcoin price volatility triggered short-term sell-offs. He noted, “Since the $73K peak, the number of people willing to sell Bitcoin has dropped to a minimum zone over the past 6 months.”

In March, when Bitcoin hit its yearly high of $73,000, the sell-side risk ratio neared 80,000. Now, however, it sits below 20,000, indicating that very few investors are eager to liquidate their positions.

Bitcoin Holders in Profit Amid Reduced Selling Pressure

Despite this reduced sell-side pressure, the Bitcoin network remains active and healthy. Adler’s analysis shows that the daily on-chain realized profit is hovering around $500 million, far from the $3.6 billion record seen in March. Nonetheless, the net daily profit, after accounting for losses, stands at an impressive $456 million.

Bitcoin’s aggregate cost basis — the average price at which different groups of investors purchased their BTC — remains a crucial factor in determining market support and resistance levels. Speculators, or short-term holders (STHs), have returned to profitability after an extended period of volatility, with the STH cost basis currently around $62,250. This marks a key recovery phase for investors who had been selling at a loss during market uncertainty.

What’s Next for Bitcoin?

As Bitcoin approaches all-time highs, the minimal sell-side risk suggests strong market support and growing confidence among investors. While short-term corrections may occur, the overall sentiment indicates that the market is in a pivotal state, with significant potential for continued growth.

The low selling pressure, combined with robust network activity, provides optimism that Bitcoin could break past its previous record highs, especially if investor confidence remains strong. For now, Bitcoin’s sell-side risk remains at an all-time low, positioning the market for further bullish momentum in the coming months.

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