• Bitcoin short-term holder profit-taking has spiked, as seen by the „Spent Output Profit Ratio“ (SOPR) value breaking the 1 threshold.
• This could lead to a correction in the crypto’s price, as similar trends have been observed in the past.
• The STH cohort includes all investors who acquired their coins within the last 155 days.

The crypto market has been experiencing a lot of volatility in recent weeks, and on-chain data suggests that this could be due to short-term holders taking profits. According to an analyst in a CryptoQuant post, the Spent Output Profit Ratio (SOPR) is a relevant indicator here, as it tells us whether the average Bitcoin investor is selling their coins at a profit or at a loss right now. When the value of this metric is greater than 1, it means that holders as a whole are realizing some profits on their selling currently.

The STH cohort includes all investors who acquired their coins within the last 155 days, and a recent chart shows that the Bitcoin SOPR specifically for this cohort has surged and broken above 1. This suggests that short-term holders may be taking profits off their holdings, and that this could lead to a correction in the crypto’s price. Similar trends have been observed in the past, so this is something that investors should keep a close eye on.

It’s also important to note that long-term holders (LTHs) are not affected by the current trend, as those who have been sitting on their coins for more than 155 days are considered LTHs. These investors have a different strategy when it comes to trading, and are less likely to be influenced by short-term market conditions.

Overall, the recent surge in Bitcoin SOPR for short-term holders suggests that some investors may be taking profits off their holdings, which could lead to a correction in the crypto’s price. While this is something that should be monitored closely, it’s important to remember that long-term holders are less likely to be affected by short-term market movements.