- Bitcoin’s SOPR for its short-term holders fell below 1 following last week’s price decline.
- This meant that these investors have since traded at a loss.
Bitcoin’s [BTC] short-term holders continued to distribute their holdings at a loss as the Spent Output Profit Ratio for this cohort of investors trailed downward at press time.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
Short-Term Holder Spent Output Profit Ratio (STH-SOPR) is a metric used to gauge the profitability of short-term holders of a particular crypto asset. It generally offers insights into whether investors who have held a particular asset for three to six months are in a profitable or unprofitable position.
If the STH-SOPR is above 1, it indicates that short-term holders, on average, are selling their coins at a profit. Conversely, if the STH-SOPR is below 1, it suggests that these holders are selling at a loss.
Commenting on the impact of last week’s deleveraging event on BTC’s short-term holders, pseudonymous CryptoQuant analyst Onchained noted that the STH-SOPR fell to 0.96.
According to Onchained, This STH-SOPR level was similar to a previous price correction in March 2023, when BTC’s price declined from $25,000 to $19,800, and the STH-SOPR also dropped to 0.96.
This metric was 0.98 at press time, according to data obtained from CryptoQuant. With BTC exchanging hands above $26,000, “short-term holders are still selling at a loss, but the losses are less significant.”
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Author: Abiodun Oladokun
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