Bitcoin’s RPV ratio reveals if BTC bull run is in jeopardy?

Bitcoin’s RPV ratio reveals if BTC bull run is in jeopardy?

January 23, 2023

By Suzuki Shillsalot

How much are 1,10,100 BTC worth today?

RPV ratio suggests a decrease in enthusiasm for the Bitcoin bull run.

Trader sentiment remains positive and volume, velocity, and exchange reserves all show market strength.

According to data provided by glassnode, Bitcoin‘s RPV, or Profits-to-Value Ratio, declined significantly over the last few days. This ratio compares profit-taking in the market against the network valuation and its decline suggests that a lot of enthusiasm for the bull market has dissipated.

This can have implications for both short-term and long-term holders of Bitcoin.

HODLers get tempted

RPV decline was reflected in an increased MVRV ratio, indicating most holders would profit from selling. The long/short difference remained negative which also incentivized short-term holders to sell as they could collect most of the profits.

Another indicator of this would be the decline in the number of addresses in losses. According to glassnode, the number of addresses in losses reached an 8-month low. This would suggest that multiple addresses would be tempted to sell their holdings during this period.