Data shows the Bitcoin “reserve risk” indicator has recently plunged down and is now reaching all-time lows only seen back in 2015 bear and the March 2020 COVID crash.
Bitcoin Reserve Risk Suggests HODLing Relative To Price Is Strong
According to the latest weekly report from Glassnode, BTC investors have been holding strong onto their coins despite the large decline in the crypto’s price recently.
Before looking at what the “reserve risk” indicator does, it’s best to get an understanding of a couple concepts first.
A “coin day” is accumulated in the market for each 1 BTC that stays unmoved for a day. The sum of such coin days in the entire market can tell us about how dormant the long-term holder supply has been.
Because of this, the sum of coin days can be an effective way of measuring the conviction of hodlers in the Bitcoin market.
However, there is another way to interpret the coin days and hence the LTH conviction; as Glassnode explains:
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