- Bitcoin’s LTH SOPR recently fell below 1.
- This showed that the long-term holders of the currency sold at a loss for a short time.
Bitcoins [BTC] The Spend Output Profit Ratio (SOPR) for long-term holders (LTH) recently fell below 1. This indicated that this cohort of investors briefly sold their investments at a loss.
Long-Term Holder Spent Output Profit Ratio (LTH-SOPR) is a metric used to measure the profitability of long-term holders of a crypto asset. It provides insight into whether or not investors who have held a particular asset for more than twelve months are in a profitable position.
When this statistic returns a value above 1, it indicates that long-term holders of BTC are selling their coins for a profit on average. Conversely, when the value falls below 1, it indicates that these holders are selling at a loss.
The details
AMBCrypto found that the LTH-SOPR dropped to 0.96 on November 30. It then regained its position above the zero line.
At the time of writing this value stood at 1.61. This suggested that investors who had held BTC for more than 12 months could trade at a profit again.
Source: CryptoQuant
As for the short-term holders of the currency, in a recent one reportpseudonymous CryptoQuant analyst Crypto Hell noted that their SOPR is also “falling close to 1.”
“In this consolidated price situation, numerous traders are crowding into spot or derivatives markets. If their analysis goes wrong, it’s a loss. That could lower the STH-SOPR ratio, indicating that short-term traders are selling at a loss.”
According to the analyst, a consistent decline in the SOPR of the two categories of investors typically results in a decline in the price of BTC.
“It appears that looking at both ratios where they have no problem selling at a loss, this indicates a correction towards $33,000,” the analyst opined.
Price at 18 month high
During the trading session on December 1, the price of BTC rose above $38,000 for the first time since May 2022. At the time of writing, the leading cryptocurrency was exchanging hands at $38,800, according to data from CoinMarketCap.
The unexpected price increase above $38,000 resulted in the liquidation of some short positions on the currency’s futures market.
Read Bitcoins [BTC] Price prediction 2023-24
Liquidation data reviewed by AMBCrypto shows that short positions worth $24 million have been liquidated within the last 24 hours.
With significant bullish sentiment present in the BTC market, open interest has increased by 8%, according to data from Mint glass.