What does on-chain suggest about the current risk/reward investment in Bitcoin?

What's new?

The reserve risk metric suggests the risk/reward to invest in Bitcoin is currently just as good as it was in 2015.

Why is this relevant?

Reserve Risk is an indicator used to assess the confidence of long-term investors relative to the price of Bitcoin at any given time. When Reserve Risk is low, it suggests that investor confidence is high and Bitcoin price is low. Therefore, there is an attractive risk/reward to invest in Bitcoin. When confidence is low and the price is high, then risk/reward is unattractive (Reserve Risk is high).

What does the data tell us?

On-chain data shows that the current reserve risk is equal to the risk/reward that was found in 2015 for Bitcoin.

Conclusion
Reserve risk suggests there is an attractive risk/reward to invest in Bitcoin. Historically, when Reserve Risk is low, it has been a great Bitcoin buying opportunity.

Nothing in this article constitutes professional and/or financial advice. The content is provided exclusively for informational and/or educational purposes. Nothing is to be construed as an offer or a recommendation to buy or sell any type of asset. Seek independent professional advice in regards to financial, tax, legal and other matters.

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