On-chain data shows that Bitcoin short-term holders have now started to realize significant losses. This could prove to be a bearish signal for the crypto. Bitcoin Short-Term Holders Are Taking Significant Losses As pointed out by an analyst in a CryptoQuant post, the BTC market is now looking at significant losses being realized. This trend may be reminiscent of the May 2021 crash. The relevant indicator here is the Spent Output Profit Ratio (SOPR), which is an on-chain metric. The SOPR measures the profit ratio of the overall market to check whether investors are, on an average, in profit or loss. The indicator works by looking at the price each coin on the chain was bought at and comparing it with the selling price. When the value of the SOPR is above 1, it means coins during the period sold at a profit. On the other hand, values below 1 suggest holders were selling at a loss. Also, naturally, when the indicator’s value is exactly equal to one, the investors were, on average, breaking even for the specific timescale. A modified version of the metric is the Short-Term Holder SOPR (STH-SOPR), which shows the SOPR for coins that were held for less than 155 days. Related Reading | Twin Peaks: Comparing The Two 2021 Bitcoin Tops Now, here is a chart that highlights the trend in the Bitcoin STH-SOPR over the past few years: Looks like the value of the indicator has gone down recently | Source: CryptoQuant As you c...
