- Bitcoin’s SOPR suggested that short- and long-term holders made profits.
- The MVRV ratio was at its highest level since March 2022.
With Bitcoin [BTC] The Spent Output Profit Ratio (SOPR) for short-term holders (STH), trading at a multi-month high, climbed to its highest level since May, data from CryptoQuant showed.
Source: CryptoQuant
How much are 1,10,100 BTCs worth today?
BTC’s SOPR measures the amount of profit and loss suffered by holders of the coin over a given period of time.
When SOPR is higher than one within a given period, it means that those who sold at the current price sold at a profit. Conversely, when the benchmark is less than one within a given time frame, those who sold within that time frame suffered losses.
At the time of writing, the STH-SOPR was 1.03. Data from CryptoQuant shows that this has risen steadily since October 19, indicating that all trades from investors who have held BTC for less than 155 days have returned profits.
During that period, the value of BTC increased by 22%, data shows CoinMarketCap revealed.
In a new commentary on the profit-taking activity of BTC’s STH reportpseudonymous CryptouQant analyst Elcryptotavo noted that this cohort of investors is “selling the pump.”
On the other hand, “long-term holders (LTH) are not going anywhere,” the analyst added. While the LTH-SOPR was above 1 at the time of writing, indicating that this group of investors was also making profits.
Furthermore, the slow decline of the Coins-Destroyed-Days statistic showed that they have reduced their distribution.
Source: CryptoQuant
The BTC market has been in its best form this past year
At the time of writing, BTC’s market value to realized value ratio (MVRV) was 71.30%. According to data from SantimentThe last time the leading currency’s MVRV was this high was in March 2022.
Source: Santiment
An asset’s MVRV ratio follows the ratio between the current market price of the asset and the average price of each acquired coin or token of that asset. A positive MVRV ratio above one indicates that an asset is overvalued.
According to SantimentThe more this ratio rises, the more likely it is that traders have historically shown their willingness to sell.
Read Bitcoin’s [BTC] Price forecast 2023-24
Conversely, a negative MVRV value shows that the asset in question is undervalued, and that if holders were to sell it at the asset’s current price, they would incur losses.
BTC’s MVRV ratio is above 70% and suggests that if all holders were to sell at the coin’s current market value, they would realize a gain of around 70% on average.