Altcoins Talks - Cryptocurrency Forum

Cryptocurrency Ecosystem => Bitcoin Forum => Bitcoin News & Updates => Topic started by: Btceth01 on November 10, 2021, 06:35:01 AM

Title: MEASURING CONVICTION OF BITCOIN HOLDERS WITH RESERVE RISK
Post by: Btceth01 on November 10, 2021, 06:35:01 AM
Reserve risk is a ratio between the current price of bitcoin and the conviction of long-term holders.The below is from a recent edition of the Deep Dive, Bitcoin Magazine's premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.
In today's Daily Dive we will take an in-depth look at Reserve Risk.Reserve risk is a metric founded by Hans Hauge, and it is a cyclical market indicator which aims to quantify the risk/reward of allocating to bitcoin based on the conviction of long-term holders. Simply, reserve risk is a ratio between the current price of bitcoin and the conviction of long-term holders. The current price can be thought of as the incentive to sell, and the conviction of long-term holders/investors can be quantified as the opportunity cost of not selling Source (https://cryptonews.net/2591295/?utm_source=CryptoNews&utm_medium=app&utm_campaign=shared)