Short-term Bitcoin holders have begun selling their assets at a loss for the first time in the last four months. This is indicated by data from the Spent Output Profit Ratio (SOPR) indicator, which has fallen below the “1” mark. This trend signals that some investors are realizing losses despite the stable rise in Bitcoin’s price.
This is reported by Finway
What the SOPR Decline Means and How the Market is Reacting
For over four months, the SOPR value remained above the breakeven level, demonstrating the confidence of speculators and a positive sentiment among short-term investors. The SOPR tool is used to assess the ratio of profits and losses for Bitcoin holders: when the indicator exceeds “1”, investors are realizing profits, while a drop below indicates prevailing losses.
Analysts note that the current decline in SOPR may indicate growing uncertainty among market participants. At the same time, despite a significant increase in Bitcoin’s price—from approximately $60,000 to nearly $125,000 over the year—there have been no noticeable spikes of euphoria in the market, which typically accompany peak growth phases.
The Role of Institutions and Prospects for Investors
In previous cycles, a sharp increase in SOPR coincided with periods of “extreme greed” and mass participation from retail investors. However, this time, it is the retail segment that is showing restrained activity, while institutional players are likely providing market support.
“Historically, market peaks have only been confirmed when SOPR reached levels of extreme greed—something that has not occurred in this rally. This absence of a signal suggests that the long-term trend remains unchanged, and the current realization of losses may only signify a healthy pause within a larger bullish cycle,” experts noted.
Experts summarize that if Bitcoin’s price receives reliable support and the SOPR value rises above “1” again, it will increase the likelihood of further growth and open opportunities for reaching new historical highs before a potential market exhaustion.
It was also previously reported that the influence of retail traders is increasing in the Bitcoin futures market, which may affect the further development of the cryptocurrency sector.