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A
recent
evaluation
has
surfaced
that
reveals
that
Bitcoin’s
long-term
holders
are
slowly
easing
away
from
their
deep
profits,
and
that
this
could
affect
prices
in
either
way,
depending
on
further
developments.
Related
Reading
The
Distribution
Trap:
Why
Bitcoin’s
Reserve
Growth
Proves
Sellers
Still
Hold
The
Tape18
hours
ago
Long-Term
Holder
Average
Monthly
SOPR
Slips
Under
1
In
a
recentQuickTake
poston
CryptoQuant,
a
pseudonymous
on-chain
analyst,
Darkfost,
reveals
that
Bitcoin’s
long-term
holders
are
entering
a
fragile
phase
in
the
current
cycle.
This
post
is
based
on
readings
obtained
from
the
BTC:
Long-Term
Holders
(LTH)
SOPR
metric,
which
tracks
if
coins
moved
by
Long-Term
Holders
are
done
profitably,
or
at
a
loss.
A
SOPR
value
above
1
reflects
that
holders
of
this
category
are,
on
average,
realizing
profits,
while
a
reading
below
1
signals
that
these
coins
are
being
moved
at
a
loss.
According
to
Darkfost,
the
current
readings
from
the
SOPR
metric
have
fallen
under
the
critical
1
level,
and
currently
sit
around
0.98
This
is
a
sign
that
Bitcoin’s
LTHs,
which
are
typically
the
strongest
investor
hands
in
the
market,
are
beginning
to
realize
losses
on
a
monthly
basis.
Interestingly,
the
scenario
is
somewhat
different
on
the
annual
timeframe.
Related
Reading
XRP
Emerging
As
Safe
Haven?
CEO
Points
To
Steady
Inflows
As
BTC,
ETH
Struggle1
day
ago
Annual
LTH
SOPR
Still
Positive,
But
Trend
Is
Falling
—
Analyst
Darkfost
further
highlights
that,
although
the
monthly
timeframe
leans
towards
the
red
zone,
the
annualized
SOPR
still
sits
well
into
positive
territory,
with
readings
at
approximately
1.84.
According
to
the
analyst,
this
represents
about
84%
in
average
realized
gains,
by
implication.
However,
the
annualized
profits
have
taken
on
a
downward
trend
and
have
been
slowly
falling.
Notably,
the
LTH
SOPR
has
not
gone
higher
than
3.4
on
the
charts
throughout
the
current
cycle,
a
value
that
is
approximately
half
the
readings
seen
in
the
previous
cycle’s
peak.
Interestingly,
this
is
also
less
than
four
times
the
peak
of
the
two
previous
cycles,
suggesting
a
less
impulsive
distribution
among
this
investor
cohort.
Source:
CryptoQuantFurthermore,
Darkfost
conjures
historical
data,
showing
that
bear
markets
have
formed
only
after
the
SOPR
dropped
towards
the
0.6
region,
a
level
that
correlates
with
average
realized
losses
of
approximately
40%.
Hence,
while
the
current
reading
on
the
metric
is
below
1
every
month,
it
is
still
far
from
the
zone
representing
capitulation.
For
now,
the
Long-term
holders
have
entered
what
seems
to
be
a
transitional
phase.
In
the
scenario
where
Long-Term
Holder
realized
profits
continue
to
fade,
selling
pressure
might
in
turn
erode
from
this
side.
As
of
this
writing,
the
Bitcoin
price
stands
at
a
valuation
of
approximately
$64,247,
reflecting
a
loss
of
4.85%
over
the
past
day.
BTC
trading
at
$64,297
on
the
daily
chart
|
Source:
BTCUSDT
chart
on
Tradingview.comFeatured
image
from
iStock,
chart
from
Tradingview