Measuring Conviction Of Bitcoin Holders With Reserve Risk

Measuring Conviction Of Bitcoin Holders With Reserve Risk


The beneath is from a current version of the Deep Dive, Bitcoin Journal’s premium markets publication. To be among the many first to obtain these insights and different on-chain bitcoin market evaluation straight to your inbox, subscribe now.

In in the present day’s Each day Dive we’ll take an in-depth take a look at Reserve Threat.

Reserve risk is a ratio between the current price of bitcoin and the conviction of long-term holders.

Supply: Glassnode

Reserve danger is a metric based by Hans Hauge, and it’s a cyclical market indicator which goals to quantify the chance/reward of allocating to bitcoin based mostly on the conviction of long-term holders. Merely, reserve danger is a ratio between the present worth of bitcoin and the conviction of long-term holders. The present worth could be regarded as the motivation to promote, and the conviction of long-term holders/traders could be quantified as the chance price of not promoting.

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