Glassnode RHODL ratio rises to the third highest in history, on-chain data shows Bitcoin may have bottomed out

Deep Tide TechFlow News, April 17, according to CoinDesk, the on-chain data platform Glassnode’s RHODL ratio has risen to 4.5, the third-highest level in history. This indicator measures the market structure by comparing the wealth share of long-term holders (holding coins for 6 months to 3 years) with short-term holders (holding coins for 1 day to 3 months). The current reading shows that after approximately 50% price correction over the past six months, many short-term speculators have been washed out, and long-term holders are regaining dominance, making the market characteristics more akin to a cycle bottom rather than a top.

Historically, the RHODL ratio has been higher only twice, in 2015 (ratio of 5) and 2022 (ratio of 7), both corresponding to cycle lows, which theoretically suggests that Bitcoin still has room for further downside. However, analysts point out that for the ratio to rise further, near-complete exhaustion of short-term demand is required, and Bitcoin has already rebounded about 25% from the February lows. The funding rate for perpetual contracts is negative, and combined with the macro backdrop of the S&P 500 reaching new all-time highs, the probability of such extreme scenarios occurring is relatively limited.