Bitcoin Long-Term Holder SOPR Continues To Trend Down
As pointed out by an analyst in a CryptoQuant , BTC long-term holders are currently realizing the largest amount of losses since 2019.The “spent output profit ratio” (or SOPR in brief) is an indicator that tells us whether Bitcoin investors are selling at a profit or at a loss right now.
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On the other hand, values of the ratio being less than one imply the overall market is realizing a loss at the moment.The “long-term holder” (LTH) group includes all those investors who held their coins for at least 155 days before selling or moving them.
The value of the metric seems to have been going down in recent weeks | Source:As you can see in the above graph, the Bitcoin LTH SOPR has been below one recently, and its value has been declining further. This means that in response to the latest crash in the price of the crypto, these hodlers have panicked and started selling at a loss.
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Most recently, the value of the metric touched lows not observed since way back in 2019. This suggests that right now the LTH cohort is harvesting the largest amount of losses in more than three years. The long-term holders realizing such high losses may be a sign that the bottom could be coming closer for Bitcoin.BTC Price
At the time of writing, Bitcoin’s price floats around $20.7k, down 12% in the last seven days. Over the past month, the crypto has lost 31% in value.
The below chart shows the trend in the price of the coin over the last five days.Looks like the value of the crypto has rebounded back over the last couple of days | Source:
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com