Bitcoin: Long-Term Holder SOPR (Spent Output Profit Ratio) is a metric that shows whether long-term Bitcoin holders (usually those holding for more than 155 days) are selling at a profit or a loss. With this metric, we can analyze the impact of long-term investors on the market.
The chart shows the SOPR ratio of Bitcoin’s long-term holders (purple line) and price movements (white line). SOPR > 1 generally indicates that sales are made at a profit, while SOPR < 1 shows sales at a loss.
What do we see on the chart?
Early 2022: The SOPR value is high and volatile. This indicates that profit-taking is intense. However, prices are in decline, reflecting the impact of selling pressure during this period.
Late 2022 and Early 2023: The SOPR is generally below 1, with prices moving sideways and showing signs of recovery. This suggests that long-term investors were selling at a loss, indicating signs of capitulation.
Mid-2023 and Beyond: The SOPR value is gradually moving closer to or above 1. This shows that investors are starting to sell profitably, with growing confidence in the market, supporting bullish sentiment.
Towards 2024: As the price rises, the SOPR is generally above 1. This indicates that long-term investors are in profit and that there is no significant selling pressure as prices rise.
Throughout 2024: With Bitcoin prices rising, the SOPR remains above 1. This shows that long-term investors continue to sell at a profit and that selling pressure remains low as prices increase. The data continues to support bullish sentiment.
In summary, while long-term investors were selling at a loss in 2022, a recovery was seen in 2023 and beyond. The stability of the SOPR above 1 shows that the market is open to growth, reflecting the confidence of those accumulating Bitcoin.
We will continue to make the most of this metric in our long-term analyses.
Written by cryptoavails
