As the cryptocurrency price plummeted below $24k, on-chain data indicates that the Bitcoin Long-Term holder SOPR fell to March 2020 levels.
Bitcoin Long-Term Holder SOPR Plunges Deeper Below One
In a CryptoQuant article, an analyst pointed out that long-term BTC holders now experience a loss similar to March 2020.
The “spent output profit ratio” (or SOPR in brief) is an indicator that tells us whether Bitcoin investors are selling at a profit or at a loss right now.
To determine the price at which it was moved previously, the metric uses on-chain data.
The last price paid for the cryptocurrency was below the actual value, so the coin is now being sold profitably.
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However, if the price was higher than its previous selling price, it would indicate that the coin suffered a loss.
If SOPR’s value is higher than 1, it indicates that the entire BTC market is making a profit. Contrary to popular belief, values less than 1 indicate that all investors are suffering losses.
“Long-term holders” (LTHs) are those Bitcoin investors who hold their coins for at least 155 days without selling them.
This chart shows how the BTC SOPR has changed for specific LTHs.
CryptoQuant: The 20-day MA LTH SoPR seems to be at a record low. Source: CryptoQuant| Source: CryptoQuant
The graph above shows that the Bitcoin long-term holder SOPR fell below 1 in value a few minutes ago. This indicates that LTHs are selling at a loss.
LTH losses are still being realized, but it is not as high now than in March 2020 after the COVID-19 crash. Also, the crypto reached a low point around that time.
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It is possible that long-term market holders are feeling similar pain now as they did back then.
BTC price
At the time of writing, Bitcoin’s price floats around $23.5k, down 24% in the last seven days. The crypto’s value has fallen 19% over the last month.
Below is a chart showing the change in coin price over the past five days.
The crypto market has seen a decline in value over the past couple of days. Source: BTCUSD at TradingView| Source: BTCUSD on TradingView
Bitcoin dropped below $24k for the first times since December 2020. That’s 18 months ago. Currently, it’s unclear whether the crash has passed or if the coin will decline further still.
Unsplash.com's featured image. Charts by TradingView.com. CryptoQaunt.com chart.