As the first quarter of 2022 draws to a close, Bitcoin’s circulating supply has increased by 9.4% over the past eight months, a recovery that matches the 2018-19 recovery in size and duration, according to a new report from blockchain analytics firm Glassnode. quite similar. Another indicator that can capture the shock of investor psychology curve is reserve risk.
This indicator is low when investors are accumulating heavily and hoarding coins is the preferred market strategy. Conversely, when these experienced investors sold their positions, the indicator bounced back strongly (requiring a logarithmic measure).
The reserve risk indicator has consolidated at historically undervalued levels for 77 days so far, although this is much shorter than the similar periods of 2015-17 and 2018-20.