Bitcoin SOPR Near Two-Year Low as LTH Profitability Resets
Bitcoin long-term holders lost interest in selling at $90,000, new research showed, as profitability of their BTC supply dried up. Bitcoin (BTC) has seen a “complete reset” of sell pressure after dropping below $90,000…
New on-chain analysis from CryptoQuant shows long-term Bitcoin holders (LTHs) have largely stopped selling after BTC slid below $90,000, as the profitability of LTH-held supply dwindles. The platform’s Quicktake highlights a marked shift in profits and spending between long-term and short-term holder cohorts.
Key observations
- The LTH-SOPR/STH-SOPR ratio has fallen to roughly 1.35, its lowest reading since early 2024, coinciding with Bitcoin’s correction toward about $89,700.
- Short-term holders (STHs) now account for most in-profit spends, while heavy distribution from LTHs appears to have paused.
What the metrics indicate
- SOPR (Spent Output Profit Ratio) gauges whether spent outputs are being sold at a profit or loss. CryptoQuant compares SOPR for LTHs versus STHs to reveal profitability dynamics across holder groups.
- The study defines LTHs as wallets holding BTC for more than 155 days and STHs as those holding less than 155 days.
- A decline in the LTH/STH SOPR ratio suggests a “complete reset” in market profitability: prior speculative gains that pushed LTH profitability higher have been flushed, reducing immediate LTH selling pressure.
Speculative activity
- STH behavior has been volatile. CryptoQuant’s 30-day rolling net position change for STHs spiked on Nov. 24 but flipped negative on Dec. 1 as Bitcoin underwent a drawdown around the December monthly open.
- These rapid shifts are consistent with short-term traders reacting to recent price swings rather than steady accumulation.
Implications
- With LTHs largely refraining from selling and STHs responsible for most in‑profit transactions, on-chain distribution looks less congested, which could temper short-term supply pressure.
- The SOPR ratio moving to two-year lows signals subdued profitability across cohorts and a behavioral reset that may influence near-term liquidity and volatility patterns.
This article is informational and not investment advice. All trading and investment decisions carry risk; readers should do their own research. While efforts are made to ensure accuracy, the information presented is not guaranteed and may include forward-looking statements subject to uncertainty.
