On-chain data shows the Bitcoin long-term holder SOPR has dropped to March 2020 levels as the price of the crypto crashes below $24k.<\/p>\n
Bitcoin Long-Term Holder SOPR Plunges Deeper Below One<\/p>\n
As pointed out by an analyst in a CryptoQuant post, BTC long-term holders are now realizing a similar level of loss as during March 2020.<\/p>\n
The \u201cspent output profit ratio\u201d (or SOPR in brief) is an indicator that tells us whether Bitcoin investors are selling at a profit or at a loss right now.<\/p>\n
The metric works by looking at the on-chain history of each coin being sold to see what price it was previously moved at.<\/p>\n
If this last price was less than the current value of the crypto, then that particular coin has now been sold at a profit.<\/p>\n
Related Reading |\u00a0Bitcoin Slides As CPI Report Hints At Soaring Inflation \u2013 More Bearish Pressure Ahead?<\/p>\n
On the other hand, the previous selling value being more than the latest price would imply the coin realized a loss.<\/p>\n
When the value of SOPR is greater than one, it means the overall BTC market is selling at a profit at the moment. Values less than one, on the contrary, imply that investors as a whole are realizing losses right now.<\/p>\n
\u201cLong-term holders\u201d (LTHs) are those Bitcoin investors who hold their coins for at least 155 days without selling them.<\/p>\n
Here is a chart that shows the trend in the BTC SOPR specifically for these LTHs:<\/p>\n\n
The value of the 20-day MA LTH SOPR looks to have plunged down recently | Source: CryptoQuant<\/p>\n
As you can see in the above graph, the Bitcoin long-term holder SOPR dropped below one in value just a while ago, showing that LTHs have been selling at a loss recently.<\/p>\n
The degree of LTH loss realization right now is the same as it was back in March 2020, following the crash due to COVID-19. The crypto also hit a bottom around then.<\/p>\n
Related Reading |\u00a0Head To Head: Bitcoin, Ethereum Profitability For Investors<\/p>\n
The long-term holders now suffering from similar pain as back then may suggest that the market may soon see a bottom this time as well.<\/p>\n
BTC Price<\/p>\n
At the time of writing, Bitcoin\u2019s price floats around $23.5k, down 24% in the last seven days. Over the past month, the crypto has lost 19% in value.<\/p>\n
The below chart shows the trend in the price of the coin over the last five days.<\/p>\n\n
Looks like the value of the crypto has crashed down over the last couple of days | Source: BTCUSD on TradingView<\/p>\n
Today, Bitcoin plummeted below the $24k mark for the first time since December 2020, over 18 months ago. Currently, it\u2019s unclear whether the crash has passed or if the coin will decline further still.<\/p>\n
Featured image from Unsplash.com, charts from TradingView.com, CryptoQaunt.com<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
On-chain data shows the Bitcoin long-term holder SOPR has dropped to March 2020 levels as the price of the crypto crashes below $24k.<\/p>\n
Bitcoin Long-Term Holder SOPR Plunges Deeper Below One<\/p>\n
As pointed out by an analyst in a CryptoQuant post, BTC long-term holders are now realizing a similar level of loss as during March 2020.<\/p>\n
The \u201cspent output profit ratio\u201d (or SOPR in brief) is an indicator that tells us whether Bitcoin investors are selling at a profit or at a loss right now.<\/p>\n
The metric works by looking at the on-chain history of each coin being sold to see what price it was previously moved at.<\/p>\n
If this last price was less than the current value of the crypto, then that particular coin has now been sold at a profit.<\/p>\n
Related Reading |\u00a0Bitcoin Slides As CPI Report Hints At Soaring Inflation \u2013 More Bearish Pressure Ahead?<\/p>\n
On the other hand, the previous selling value being more than the latest price would imply the coin realized a loss.<\/p>\n
When the value of SOPR is greater than one, it means the overall BTC market is selling at a profit at the moment. Values less than one, on the contrary, imply that investors as a whole are realizing losses right now.<\/p>\n
\u201cLong-term holders\u201d (LTHs) are those Bitcoin investors who hold their coins for at least 155 days without selling them.<\/p>\n
Here is a chart that shows the trend in the BTC SOPR specifically for these LTHs:<\/p>\n
The value of the 20-day MA LTH SOPR looks to have plunged down recently | Source: CryptoQuant<\/p>\n
As you can see in the above graph, the Bitcoin long-term holder SOPR dropped below one in value just a while ago, showing that LTHs have been selling at a loss recently.<\/p>\n
The degree of LTH loss realization right now is the same as it was back in March 2020, following the crash due to COVID-19. The crypto also hit a bottom around then.<\/p>\n
Related Reading |\u00a0Head To Head: Bitcoin, Ethereum Profitability For Investors<\/p>\n
The long-term holders now suffering from similar pain as back then may suggest that the market may soon see a bottom this time as well.<\/p>\n
BTC Price<\/p>\n
At the time of writing, Bitcoin\u2019s price floats around $23.5k, down 24% in the last seven days. Over the past month, the crypto has lost 19% in value.<\/p>\n
The below chart shows the trend in the price of the coin over the last five days.<\/p>\n
Looks like the value of the crypto has crashed down over the last couple of days | Source: BTCUSD on TradingView<\/p>\n
Today, Bitcoin plummeted below the $24k mark for the first time since December 2020, over 18 months ago. Currently, it\u2019s unclear whether the crash has passed or if the coin will decline further still.<\/p>\n
Featured image from Unsplash.com, charts from TradingView.com, CryptoQaunt.com<\/p>\n
<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-1103","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/1103","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=1103"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/1103\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=1103"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=1103"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=1103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}