Recent research introduces the "Inactive Supply Shift Index," a groundbreaking metric poised to enhance our comprehension of Bitcoin market risks. This index, derived from historical Bitcoin blockchain data, tracks inactive supply over periods ranging from one to seven years. By analyzing weekly changes and compiling them into a composite metric, the Inactive Supply Shift Index offers valuable insights.

Recently, the index has reverted to near-zero values after a period of deep negative readings, which coincided with Bitcoin prices surpassing $70,000. Deep negative values indicated significant selling activity from long-term holders aiming to capitalize on market peaks. The reversion to zero suggests a reduction in selling pressure, indicating a stabilization phase.

This stabilization may signal a pause in aggressive selling, potentially fostering renewed buyer interest and upward momentum, provided market demand remains strong. The Inactive Supply Shift Index empowers traders, analysts, and investors to distinguish between short-term volatility and substantial market trends, aiding in informed decision-making in Bitcoin's dynamic landscape.