Bitcoin’s Long-Term Holder SOPR Metric Remains Above 1 Amid Price Decline

Bitcoin's recent performance has been declining, with on-chain metrics providing insights into market behavior.

Among these metrics, the Spent Output Profit Ratio (SOPR) for long-term holders is a critical tool for assessing investor sentiment and market resilience. Long-term holders, defined as investors holding Bitcoin for over 155 days, significantly influence price trends, making SOPR an important indicator.

Long-Term Holder Trends And Market Sentiment

Recent analysis from CryptoQuant analyst Cryptoavails indicates that Bitcoin’s long-term holder SOPR metric shows notable patterns as Bitcoin's price trends upward. SOPR values above 1 indicate profitable sales by long-term holders, while values below 1 suggest selling at a loss. Currently, the SOPR remains consistently above 1, indicating profitable sales without significant downward pressure on Bitcoin’s price.

The analysis tracks key phases in the Bitcoin market over the past two years, highlighting shifts in SOPR values. In early 2022, high SOPR volatility suggested intense profit-taking activity by long-term holders amid a price decline. This trend shifted in late 2022 and early 2023 when the SOPR mostly remained below 1, indicating losses as the market sought stability.

By mid-2023, the SOPR began trending upwards, signaling renewed confidence among long-term investors. The metric approached or exceeded 1, suggesting profitable sales as market confidence recovered. This upward trend has continued into 2024, supported by rising price levels and no significant sell-offs by long-term holders, reinforcing market stability.

SOPR As A Forward Indicator For Market Growth

Cryptoavails noted that the current SOPR state suggests a healthy market dynamic, with long-term holders contributing to stable prices. Despite periodic corrections, sustained SOPR above 1 indicates controlled selling pressure. This behavior reflects market maturity, where long-term investors do not rush to offload their holdings despite Bitcoin’s price appreciation.

Despite this, Bitcoin has been decreasing in price since its drop below $100,000 last week, currently trading at $93,991, down by 1.6% in the past 24 hours.

Bitcoin (BTC) price chart on TradingView

Featured image created with DALL-E, Chart from TradingView