Market Overview
Recent data from Glassnode reveals that Bitcoin long-term holders (LTHs) persist in selling their holdings at a loss, despite the ongoing market rally. This trend reflects prolonged bearish sentiment among investors who acquired BTC during previous bull cycles.
Key Metrics: LTH SOPR Below 1
The Spent Output Profit Ratio (SOPR) for Bitcoin LTHs has remained below 1 for 265 days, indicating sustained loss realization. This metric:
- >1: Profit-taking
- <1: Loss realization
- =1: Break-even
Historical Context:
- 2018-2019 bear market: LTH SOPR stayed below 1 for 291 days.
- Current cycle: Mirroring past trends but with potential recovery signs.Why Are Long-Term Holders Selling?
- Bear Market Pressure: LTHs who bought at peak prices face deepening losses as markets decline.
- Capitulation: Extended downturns trigger sell-offs to mitigate further losses.
- Recent Rally Impact: The SOPR shows slight improvement, suggesting partial recovery.
👉 Explore Bitcoin market trends for real-time insights.
Bitcoin Price Update
BTC trades at $22,900 (1% weekly gain), though recent days saw minor declines.
TradingView Chart: BTC/USD shows volatility amid mixed signals.FAQs
Q1: How does SOPR differ for short-term holders (STHs)?
A: STHs often react to short-term price swings, while LTHs reflect cumulative market cycles.
Q2: What triggers LTH capitulation?
A: Prolonged bear markets and psychological thresholds prompt exits.
Q3: Could the current trend reverse soon?
A: If the rally sustains, SOPR may cross 1, signaling profit-taking resumes.
Q4: How does this affect Bitcoin’s long-term value?
A: LTH selling reduces supply pressure, potentially stabilizing prices post-capitulation.
Conclusion
While LTHs endure losses, historical patterns suggest eventual recovery. Monitoring SOPR and on-chain data provides critical insights into market phases.
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Editorial Note: Independent analysis adheres to strict accuracy and unbiased reporting standards.
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