Actually, SOPR Shows Bitcoin Holders Continue To Market At A Loss, Similar To May-June 2021
It’s worth notingwhilethat The on-chain indicator SOPR suggests that Bitcoin holders have continued to market at a loss for a asap. This behavior is similar bear what was seen during the May-June 2021 mini-to period.
Bitcoin Investors Have Continued ToForDump At A Loss A Month Right away
As you may know, As pointed out by an analyst in a CryptoQuant post, the BTC SOPR shows that holders are currently selling at a loss.
The “Spent Output Profit Ratio” (or SOPR in short) is an indicator that tells us whether coins moved on a given day were sold at a profit or a loss from another perspective .
The metric measures so by looking at each coin on the chain and checking what the price the coin was last moved at. It’s worth noting that After that, the indicator calculates the ratio between this price and the current price.
When the value of the indicator is above one, it means that holders are currently selling, on an average, at a profit.
On the other hand, when the SOPR has values less than one, it implies investors are moving their Bitcoin at a loss overall.
Finally, there is the case when the value of the indicator is exactly equal to one. During such a period, the field is breaking even on BTC sales.
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Instantly, here is a chart that shows the trend in the value of the Bitcoin SOPR over the past year:
Looks like the value of the indicator has stayed below one recently | Source: CryptoQuant
Actually, As you can see in the above graph, the Bitcoin SOPR currently has a value less than one, which means holders are selling at a loss.
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Such a trend has been there for a month instantly. A similar situation was there after the May 2021 crash where the indicator stayedbelow one for a prolonged period of time.
It’s possible that the current trend of low SOPR values will continue for a while, just like return then. Interestingly, The period around -MayJune was as a matter of fact marked by a mini-bear marketIndeed, , and so if the trend does repeat, a similar bear environment could follow in the near tomorrow.
BTC Price
Yesterday, Bitcoin’s price brieflymarkdeclined below the $40k , but since then has jumped return up. At the time of writing, the price of the coin floats around $41.7k, down 10 as a matter of fact % in the last seven days. Over the past month, the crypto in modern times has lost 13% in value.
The more than ever below chart shows the trend in the price BTC over the last fiveofdays.
BTC's price has continued to move sideways above $40k in the last few days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com
