With the latest correction in the cryptocurrency markets, significant changes were detected in the selling behavior of Bitcoin’s long-term investors. According to the current data published by on-chain data analysis company CryptoQuant, loss-making transactions have started to increase in the sales of this investor group.
Change in the Behavior of Long-Term Investors
Investors, who have maintained their assets in the Bitcoin market for a long time and are generally not affected by short-term fluctuations, began to make unorthodox moves during the recent decline in the market. According to the Spent Output Profit Ratio (SOPR) indicator, the profit rate per transaction of this investor group has fallen below 1 for the first time in the recent period. The decrease in the SOPR value to 0.88 shows that long-term investors who sell Bitcoin on average lose money. In the past, this level signaled the end of the 2023 bear market.
Market Pressure Increased According to Analysis
SOPR data is considered especially important for monitoring the profit or loss status of long-term investors. While the annual average SOPR value is at a high level of 1.87, the recent decline is considered a harbinger of a significant differentiation in market dynamics. This indicates that even patient investors tend to reduce their positions due to the current market conditions.
Close Monitoring is Required for Market Health
Historically, periods when long-term investors begin to sell at a loss generally coincide with the phases of a bear market nearing its end. However, the latest data reveals that the monthly average SOPR value is still at 1.09 and the majority are still in the market with profitable sales.
Experts state that investors should not make a final decision by looking at these figures, but the indecision of long-term investors provides an important clue for the market. It is stated that if the market stabilizes, the pressure may decrease, but if the selling pressure continues, the weak trend in long-term investors may strengthen.
On-chain indicators such as SOPR stand out as an important reference in measuring market health. The change in the behavior of long-term investors is often among the indicators that predict the general market trend.
The fact that Bitcoin is currently in a correction process requires such indicators to be followed more closely in investment strategies. Investors continue to monitor on-chain data to be prepared for potential volatility.
On the other hand, Bitcoin’s seven-day average loss of 2.3 billion dollars was interpreted by analysts as a capitulation move of historical importance. This finding in CryptoQuant data reflects the extent of current market pressure.
