Recent market data indicates that short-term Bitcoin holders are currently facing losses, as the world’s largest cryptocurrency continues to trade within a narrow range. One particular on-chain metric, the Short Term Holder Spent Output Profit Ratio (STH-SOPR), has shed light on this situation.
The STH-SOPR, a metric used to measure the profitability of Bitcoin traded by holders for less than 155 days, decreased from 1 to 0.9809 due to the price decline over the past two weeks.
Analysts suggest that this decrease in STH-SOPR indicates a potential panic-selling trend among short-term holders, which could further contribute to a decline in Bitcoin prices. This behavior could instigate a self-reinforcing cycle of dropping values, further escalating market volatility.
Over the past 24 hours, Bitcoin has been fluctuating within the $25,937 and $25,590 range, marking a 0.4% decrease. This stagnant performance follows a significant decline that happened two weeks ago and reflects a cautious investor sentiment towards the cryptocurrency market.
Expectations surrounding the approval of spot Bitcoin ETFs have also reportedly dampened, following the U.S. SEC’s recent decision to extend its review period on seven ETF filings by an additional 45 days. This delay has frustrated investors who were hoping for a swift recovery in the short term.
Bitcoin’s current market position is a stark contrast to the surge it experienced after Grayscale’s legal victory against the SEC, where the coin reached a high of $28,100. Since then, Bitcoin’s value has retreated, erasing all gains made post the Grayscale announcement.
