Bitcoin’s Key SOPR Metric Holds Steady: Are Long-Term Holders Eyeing Higher Prices?

NewsBTC
Updated
Tony
coverImg
Source: DepositPhotos

Bitcoin has continued to see declining performance in recent days with on-chain metrics offering valuable insights into market behavior.


Among these metrics, the Spent Output Profit Ratio (SOPR) for long-term holders has particularly emerged as a critical tool for assessing investor sentiment and market resilience.


Long-term holders, defined as investors holding Bitcoin for over 155 days, are often viewed as a stabilizing force in the market. Their selling patterns can significantly influence price trends, making SOPR an indicator worth watching.



Long-Term Holder Trends And Market Sentiment


Recent analysis from a CryptoQuant analyst known as Cryptoavails highlights that Bitcoin’s long-term holder SOPR metric continues to exhibit notable patterns as Bitcoin’s price trends upward.


Historically, SOPR values above 1 indicate that long-term holders are selling at a profit, while values below 1 suggest they are offloading their holdings at a loss.


This behavior reflects broader market confidence or capitulation during periods of price decline. Currently, the SOPR metric remains consistently above 1, signaling that long-term holders are selling profitably without adding significant downward pressure on Bitcoin’s price.


The analysis from Cryptoavails tracks key phases in the Bitcoin market over the past two years, highlighting significant shifts in SOPR values. For instance, in early 2022, the SOPR metric showed high volatility with frequent spikes, suggesting intense profit-taking activity by long-term holders.


Amid these sales, Bitcoin’s price experienced a downward trend, reflecting persistent selling pressure during that period. This trend gradually shifted in late 2022 and early 2023 when the SOPR metric mostly remained below 1, indicating that long-term holders were selling at a loss as the market sought to find stability.


By mid-2023, the SOPR began trending upwards, signaling renewed confidence among long-term investors. The metric consistently moved closer to or above the critical level of 1, suggesting that long-term holders were once again selling at a profit while market confidence began to recover.


This upward trend has remained intact into 2024, supported by Bitcoin’s rising price levels. Importantly, there have been no significant sell-offs by long-term holders, reinforcing the broader market’s stability, according to the crypto analyst.



SOPR As A Forward Indicator For Market Growth


Overall, Cryptoavails mentioned that the current state of Bitcoin’s SOPR suggests a healthy market dynamic, with long-term holders contributing to a stable price structure. Despite periodic corrections, the sustained presence of SOPR above 1 indicates that selling pressure remains controlled.


The analyst also pointed out that this behavior reflects market maturity, where long-term investors are not rushing to offload their holdings despite Bitcoin’s price appreciation.


Regardless, Bitcoin has continued to consistently decrease in price since its sharp drop below $100,000 last week. At the time of writing, Bitcoin trades at a price of $93,991 down by 1.6% in the past 24 hours.


Bitcoin (BTC) price chart on TradingView

Featured image created with DALL-E, Chart from TradingView

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Forbes releases 7 major predictions for crypto in 2025The year 2024 has set up the crypto industry to become a serious topic in the international landscape. With the industry inching closer to 2025, Forbes outlined seven key predictions for significant events anticipated in the coming year.
Author  Cryptopolitan
8 mins ago
The year 2024 has set up the crypto industry to become a serious topic in the international landscape. With the industry inching closer to 2025, Forbes outlined seven key predictions for significant events anticipated in the coming year.
placeholder
Experts Predict AI, Meme Coins, and RWA to Maintain Momentum in 2025’s Crypto MarketSeveral trends that gained traction in 2024 are expected to maintain their momentum in 2025, according to industry experts. Among the most prominent are meme coins, the integration of artificial intelligence (AI) with blockchain technology, and the tokenization of real-world assets (RWAs).
Author  Beincrypto
11 mins ago
Several trends that gained traction in 2024 are expected to maintain their momentum in 2025, according to industry experts. Among the most prominent are meme coins, the integration of artificial intelligence (AI) with blockchain technology, and the tokenization of real-world assets (RWAs).
placeholder
Bitcoin Policy Institute sends ‘global reordering proposal’ in the US-China competition to incoming Treasury Department SecretaryIn a comprehensive report prepared by Matthew Pines, a National Security Fellow at the Bitcoin Policy Institute for Scott Bessent, the incoming secretary of the Treasury Department, he details the strategic role Bitcoin could play in the US economic policy.
Author  Cryptopolitan
8 hours ago
In a comprehensive report prepared by Matthew Pines, a National Security Fellow at the Bitcoin Policy Institute for Scott Bessent, the incoming secretary of the Treasury Department, he details the strategic role Bitcoin could play in the US economic policy.
placeholder
What’s The Worst Case Scenario For Bitcoin Right Now? Analyst ExplainsIn his latest video published on December 21, crypto analyst Rekt Capital tried to answer the question “What’s The Worst Case Scenario For Bitcoin Right Now?”. After reaching a new all-time high at $108,374 on December 17, the BTC price is down more than -11%.
Author  NewsBTC
Yesterday 10: 17
In his latest video published on December 21, crypto analyst Rekt Capital tried to answer the question “What’s The Worst Case Scenario For Bitcoin Right Now?”. After reaching a new all-time high at $108,374 on December 17, the BTC price is down more than -11%.
placeholder
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP crash, wiping $1.17 billion from the marketBitcoin (BTC) price trades below $98,000 on Friday after declining more than 6% this week.
Author  FXStreet
Dec 20, Fri
Bitcoin (BTC) price trades below $98,000 on Friday after declining more than 6% this week.
Real-time Quote