Recent research indicates that Bitcoin (BTC) has undergone a “complete reset” in sell pressure following its decline below $90,000.
Key insights:
Long-term Bitcoin holders have adjusted their selling strategies as the price has plummeted beneath $90,000.
A variant of the widely-used SOPR metric has reached its lowest point since early 2024.
Recent market fluctuations have triggered typical knee-jerk trading reactions from short-term holders.
Bitcoin SOPR “Ratio” achieves significant 1.35 mark
In a recent “Quicktake” blog post on Saturday, the on-chain analytics platform CryptoQuant observed two-year lows in a critical Bitcoin holding metric.
Long-term holders (LTHs) of Bitcoin have largely ceased selling their BTC as its price fell to the lowest levels seen since April.
According to CryptoQuant, there’s been a notable change in the profitability of unspent transaction outputs (UTXOs) created by LTHs compared to their speculative counterparts, the short-term holders (STHs).
The terms “LTH” and “STH” refer to wallets holding Bitcoin for over or under 155 days, respectively.
Utilizing a version of the Spent Output Profit Ratio (SOPR), which assesses the ratio of UTXOs in profit versus loss, CryptoQuant confirms that STHs are now responsible for the majority of profitable transactions.
“The Bitcoin SOPR Ratio (LTH-SOPR / STH-SOPR) has fallen to 1.35, marking its lowest figure since early 2024. This decrease aligns with Bitcoin’s price adjustment to the $89.7K level,” contributor CryptoOnchain summarized.
CryptoOnchain found two major conclusions from the SOPR data: the “end of significant distribution” by LTHs and a “market cooling” effect taking place instead.
“The drop indicates a substantial ‘reset’ in the market,” the post elaborated.
“The speculative excess that pushed the ratio to previous highs has been eradicated.”
Speculators perplexed by BTC price fluctuations
Bitcoin speculators have responded unpredictably to recent BTC price movements, as reflected in their overall market exposure.
Related: Ether vs. Bitcoin hints at 170% gains as ETH price breaks 5-month downtrend
According to CryptoQuant, the net position change of the STH group saw a notable spike on Nov. 24 over a rolling 30-day window.
This 30-day tally then shifted to negative by Dec. 1, as BTC/USD observed further declines around the start of the December monthly period.
This article does not contain investment advice or recommendations. Every investment and trading decision carries risks, and readers are encouraged to conduct their own research before proceeding.
This article does not offer investment advice or recommendations. All investments and trading activities include risk, and readers should do their own research prior to making any decisions. Although we aim to present accurate and timely information, Cointelegraph cannot guarantee the accuracy, completeness, or reliability of any data in this article. It may include forward-looking statements subject to risks and uncertainties. Cointelegraph will not be responsible for any losses or damages resulting from reliance on this information.
