Bitcoin (BTC) may have lost more last week after an on-chain metric repeated the move seen following the FTX crash.
as famous On September 5, James Straten, a research and data analyst at CryptoSlate, a cryptocurrency insights company, said that the short-term to long-term realized value (SLRV) ratio “flipped” for the first time since November 2022.
Bitcoin SLRV Ratio Passes FTX Warning
Bitcoin price weakness has market watchers bracing for a drop toward $23,000, but the fallout from Bitcoin’s August drop could be more severe.
According to the SLRV ratio, sales of “old” bitcoins spiked in mid-August.
Designed by renowned analyst David Puell and ARK Invest, SLRV uses the popular HODL Waves metric to track Bitcoin on-chain velocity.
HODL Waves divides the circulating BTC supply based on the age of the tokens used in transactions. SLRV divides tokens moved in the past 24 hours by tokens moved 6 to 12 months ago.
The indicator also includes two moving averages — the 30-day and 150-day trendlines — whose crossovers coincide with key BTC price events.
Just before FTX crashed, the 150-day line broke above the 30-day line; in mid-August, the phenomenon was repeated for the first time since then.
“SLRV ribbon reversed on Aug. 13, three days before Bitcoin dropped to $25,000. The last time the indicator reversed was before the FTX crash,” Staten wrote in a commentary on on-chain analytics firm Glassnode’s SLRV chart.
Speculators gradually reduce Bitcoin exposure
The previous analysis also looked closely at the behavior of the bitcoin investor community.
Related: Bitcoin Speculators Now Own Least BTC Since $69k All-Time High
Those who hold BTC for less than 155 days, known as short-term holders (STH) or speculators (as opposed to long-term holders), are of particular interest to companies such as Glassnode, on-chain analytics platform CryptoQuant, and others.
The short-term holder cost basis — the aggregate price at which STH accumulated its share of the BTC supply — previously acted as a market prop, but that no longer appears to be the case.
Currently, the STH cost basis is higher than the spot price, and Straten reports that speculators have sold heavily since the end of August at a loss.
Data from CryptoQuant programme The last price change of the various tokens used in the transaction.
This article does not contain investment advice or recommendations. Every investment and transaction involves risk, and readers should do their own research when making a decision.
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