- Bitcoin’s trades at a loss surpassed 100 million BTC.
- SOPR and MVRV stats revealed tight profit margins for long-term holders.
In light of Bitcoin’s press time state [BTC] market, there are indications that long-term shareholders are losing money. Recent reports have shed light on the magnitude of these losses.
Bitcoin transaction losses rise
Dates from Glasnode revealed that there were Bitcoin transactions at a loss even before the collapse of FTX. The stats highlighted that the press time volume of BTC trading at a loss had surpassed 100 million.
Between 2019 and 2020, 42.8 BTC were traded at a loss, while from 2021 to 2023, 136.2 million BTC were traded at a loss.
Source: Glassnode
It is important to note that these trades that incur losses involve long-term holders. The basis for identifying these long-term holders is based on a heuristic that uses a threshold of 155 days, roughly equivalent to five months.
BTC bear markets typically last between 500 and 800 days from the peak to the bottom of the market.
Current SOPR
According to CryptoQuant, the Bitcoin Spent Output Profit Ratio (SOPR) experienced a slight increase above one. At the time of writing, BTC SOPR was at around 1.0, after a small drop on June 3.
This SOPR implied that long-term holders (LTHs) sold their coins at a small profit margin. This observation was in line with the reported loss trades highlighted by Glassnode.
Source: CryptoQuant
The BTC Long-Term Holder SOPR (Spent Output Profit Ratio) is a valuable metric used to assess the profitability of long-term Bitcoin holders when they decide to sell their coins. It offers a simple interpretation: if the SOPR is above 1, long-term holders sell their coins and make a profit from the transaction.
Conversely, if the SOPR falls below 1, it means that long-term holders are selling their coins at a loss, indicating a situation of diminished profitability.
BTC MVRV long term
Examination of Bitcoin’s two-year market value to realized value (MVRV) ratio revealed that holders had incurred losses within this time frame. The MVRV chart indicated that BTC had remained below zero, reaching a low of -50% around December 2022.
It also maintained a level of around -30% through March.
However, at the time of writing, the MVRV ratio has improved to about -8.4%. It indicated reduced undervaluation and losses for Bitcoin holders in this time frame.
Source: Sentiment
Read Bitcoin [BTC] Price Forecast 2023-24
In contrast, the 30-day MVRV ratio reflected a 15% appreciation. At the time of writing, it was about -0.9%, indicating a relatively healthier state for short-term Bitcoin holders.
Looking at the daily timeframe chart, Bitcoin was trading at around $26,840. At the time of writing, it was down more than 1.2% after a slight gain in the previous trading period.