SOPR Index Shows Long-Term BTC Holders Want Higher Prices
Stable SOPR Index: A Sign for Bitcoin Bullish Expectations?
Amid the recent bearish trend in Bitcoin prices, the on-chain SOPR (Spent Output Profit Ratio) indicator for long-term investors is providing important signals about market sentiment and stability.
SOPR and the role of long-term investors
Long-term investors, typically defined as those who hold Bitcoin for more than 155 days , play an important role in maintaining price stability.
The SOPR index measures the profit or loss when investors sell, helping to identify market trends:
SOPR > 1 : Investors sell at a profit.
SOPR < 1 : Investor sells at a loss.
Currently, the SOPR of long-term investors remains above 1 , indicating that they are selling profitably without putting significant downward pressure on Bitcoin.
SOPR trend analysis through each period
According to data from CryptoQuant, Cryptoavails analysis has identified key phases in market behavior:
2022 : SOPR fluctuates strongly as long-term investors continuously take profits, leading to selling pressure and a sharp price drop.
2023 : SOPR falls below 1 , reflecting loss-making as the market seeks stability.
Mid-2023 – 2024 : SOPR returns to above 1 , indicating a recovery in market sentiment and long-term investors starting to take profits as prices rise.
This trend is expected to persist in 2024, reinforcing overall market stability despite short-term fluctuations.
Bitcoin: Low Selling Pressure and Bullish Expectations
The fact that the SOPR index remains stable above 1 shows that long-term investors are in no rush to sell off, even as Bitcoin price faces a correction.
This is considered a positive signal for market recovery and expectations of price increases in the future.
Bitcoin is still down slightly, however, currently trading at $93,991 , down 1.6% over the past 24 hours.
Will SOPR’s stability be enough to push Bitcoin back into a strong growth momentum? The market is still watching for the latest signals.