On-chain data shows Bitcoin short-term holders are increasingly selling at a loss following the latest crash in the crypto’s price.
Bitcoin Short-Term Holder SOPR Dips Further Below One
As pointed out by an analyst in a CryptoQuant post, on-chain data shows that the STH SOPR has decreased to July levels, suggesting that short-term holders are increasingly realizing their losses.
The Spent Output Profit Ratio, or “SOPR” in short, is a Bitcoin indicator that tells us whether investors are selling at a loss or a profit during a given period.
The metric’s value is calculated by taking the ratio between the value of coins at spent time, and that at the time of creation.
If the SOPR drops below one, then it means investors are, on an average, selling at a loss. While if it floats above the threshold, then the overall market is making a profit. It being exactly equal to one implies holders are breaking even.
A slight modification of this indicator is the STH SOPR, which measures the profit ratio of only those coins that were held for less than 155 days before being sold.
These coins are usually assumed to be the short-term holder (STH) supply. So, the STH SOPR highlights whether these holders were selling in profit or not at a specific time.
Now, here is a chart that shows the trend in this Bitcoin indicator over the past year:
Looks like the the value of the indicator has sharply dropped recently | Source: CryptoQuant
As you can see in the above graph, the…