Definition. Reserve Risk is defined as price divided by HODL Bank, used to assess the confidence of long-term holders relative to the price of the native coin at any given point in time.

Interpretation. When confidence is high and price is low, Reserve Risk is low and risk/reward to invest is attractive. When confidence is low and price is high, Reserve Risk is high and risk/reward is unattractive.

Notes. Created by @hansthered. For more information, see the post on Bitcoin days destroyed.

This is the Point-in-Time (PiT) variant of Reserve Risk. PiT metrics are strictly append-only and their history is immutable. The historic data does not necessarily reflect the best current knowledge, but the information at the time when a data point was first computed. PiT metrics are ideal candidates for applications in model backtesting and related quantitative purposes. Read our article on PiT metrics for more information.