Surprising Data Observed in Metric Examining Long-Term Investor Behavior in Bitcoin!

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• Long-Term Holder Spent Output Profit Ratio (LTH-SOPR) is a metric that measures the profitability of long-term holders of a crypto asset.
• According to COINOTAG, on November 30, LTH-SOPR dropped to 0.96. It later bounced back above the zero line and currently stands at 1.61.
• According to the analyst, a continuous decline in the SOPR of two investor classes often leads to a decline in BTC’s price.

A metric reflecting the behavior of long-term investors in Bitcoin recorded interesting data recently.

Long-Term Bitcoin Holders Selling

The Long-Term Holder Spent Output Profit Ratio (LTH-SOPR) of Bitcoin recently fell below 1. This indicates that this group of investors sold their assets at a loss for a short period. The Long-Term Holder Spent Output Profit Ratio (LTH-SOPR) is a metric that measures the profitability of long-term holders of a crypto asset.

It provides insights into whether investors holding an asset for more than twelve months are in a profitable position. When this metric returns a value above 1, it indicates that BTC long-term holders, on average, are selling their assets with a profit. Conversely, when it falls below 1, it indicates that these holders are selling at a loss.

According to COINOTAG’s findings, on November 30, LTH-SOPR dropped to 0.96. It later bounced back above the zero line and currently stands at 1.61. This indicates that investors holding BTC for more than 12 months are once again making profitable trades.

For short-term holders of the coin, in a recent report by well-known CryptoQuant analyst Crypto Hell, SOPR was mentioned to be approaching “1” in a similar manner:

“In this consolidating price situation, many traders are pushing themselves into spot or derivative markets. If the analyses go wrong, there will be losses. This can lower the STH-SOPR ratio, indicating that short-term traders are selling at a loss.”

According to the analyst, a continuous decline in the SOPR of two investor classes often leads to a decline in BTC’s price. The analyst expressed, “Considering that both ratios seem content with selling at a loss, this seems to indicate a correction towards $33,000.”

Highest Price in 18 Months

During the trading session on December 1, the price of BTC surpassed $38,000 for the first time since May 2022. Currently, according to the data, the leading cryptocurrency was trading at around $38,750.

The unexpected price increase above $38,000 led to the liquidation of some short positions in the futures market. Liquidation data assessed by COINOTAG showed that $24 million worth of short positions were liquidated in the last 24 hours. With a significant bullish sentiment in the BTC market, the open position ratio increased by 8%, according to Coinglass data.