The deepest Bitcoin-long-term holder SOPR value has seen since 2019 according to data from the blockchain, indicating that this particular cohort has experienced some significant losses.
The trend down for Bitcoin long-term holders SOPR continues
In a CryptoQuant article, an analyst pointed out that BTC long-term owners are experiencing the biggest losses since 2019.
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 sold, each transaction is checked by the metric.
The current selling price for any particular coin is greater than the previous one. This means that the coin suffered some loss. If the value of the coins before was lower than that now, the coin will naturally move at a profit.
If the value of the SOPR exceeds one, that means investors are all selling at a profit.
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However, if the ratio is less than 1, it means that the market overall is experiencing a loss.
The “long-term holder” (LTH) group includes all those investors who held their coins for at least 155 days before selling or moving them.
Here is the chart showing the trends in Bitcoin SOPR for LTHs.
Recent weeks have seen a decrease in the value of this metric. Source: CryptoQuant| Source: CryptoQuant
You can see that Bitcoin LTH SOPR is below one in recent months, with its value continuing to fall.
The hodlers are selling crypto at loss as a result of panicking after the last crash in its price.
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Recently, the metric’s value reached lows that were not seen since 2019! The LTH cohort seems to be suffering the greatest losses for more than three decades.
This could signal that Bitcoin’s bottom is getting closer.
BTC price
At the time of writing, Bitcoin’s price floats around $20.7k, down 12% in the last seven days. In the past month, crypto lost 31%.
Below is a chart showing the change in coin price over the past five days.
The crypto market has seen a rebound in value over the last few days. Source: BTCUSD on tradingView| Source: BTCUSD on TradingView
Featured image by Kanchanara at Unsplash.com. Charts from TradingView.com and CryptoQuant.com.