On-chain data shows the Bitcoin short-term holder SOPR has broken above one for the first time since December 2021.
Bitcoin Short-Term Holders Return To Profit Once Again
As pointed out by an analyst in a CryptoQuant post, the BTC STH SOPR has once more broken past the “one” barrier.
The “Spent Output Profit Ratio” (or SOPR in short) is a Bitcoin indicator that tells us whether coins selling right now are selling at a profit or a loss.
The metric works by looking at the price history of each coin being sold on the chain to see what price it last moved at.
If the last price was less than the current one, then the coin has been sold at a profit. Similarly, a loss is when the current price is lesser.
When the value of the Bitcoin SOPR is less than one, it means investors are, on an average, selling at a loss at the moment. On the other hand, ratio values above one imply that the overall market is realizing a profit currently.
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A modified version of the indicator shows the profit ratio for only those coins that were held for less than 155 days before being sold.
Such coins belong to a cohort of investors called the “short-term holders.” The below chart shows the trend in the Bitcoin STH SOPR (30DMA) over the past year:
The indicator seems to have just crossed over the "one" mark recently | Source: CryptoQuant
As you can see in the above graph, the Bitcoin STH SOPR has broken above one once again over the last few days. This is the first time that short-term holders have been selling at a…