A top crypto analytics firm says Bitcoin (BTC) investors are not out of the woods as long-term holders capitulate.
As Glassnode explains, the Long-Term Holder Spent Output Profit Ratio (LTH-SOPR) measures the profit ratio captured by wallet addresses holding Bitcoin for longer than 155-day periods.
“When LTH-SOPR is less than one, these players realize losses or spend coins at a price below their cost basis.
LTH-SOPR is currently trading at 0.67, indicating the average LTH spending their coins is locking in a 33% loss.”
Bitcoin is trading for $19,396 at time of writing. The top-ranked crypto asset by market cap is down by more than 4% in the past 24 hours.
Long-Term Holder Cost Basis measures the average price long-term addresses paid for their Bitcoin, according to the analytics firm.
“With the current value of LTH-SOPR at 0.67 and the LTH-Cost Basis at $22,300, it means LTHs are realizing an average of -33% losses on each spent coin, despite spot prices only being ~6% below their cost basis. This signifies that LTHs who acquired coins at much higher are the primary spenders at the moment, and those who still hold coins from the 2017-20 cycle (or earlier) are largely sitting tight.”
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Agor2012/maksum iliasin
