Analysis: Bitcoin Long-Term Holders Keep Selling at a Loss, Underscoring Correction Signal

Summary

Forecast Trend Report by Period

Bitcoin long-term holders continue to move coins at prices below their average purchase cost, reinforcing signs of a market correction, according to an analysis.

LTH-SOPR measures the average profit or loss on Bitcoin moved by long-term holders. A reading below 1 means they are, on average, moving Bitcoin at prices below their acquisition cost. Adler said the drop in LTH-SOPR over the past month was notable even compared with moves seen over the past year.

Long-term holder supply also declined. Holdings by long-term holders now stand at about 16.3 million BTC, down 171,700 BTC over the past month.

Still, not all of that decline necessarily came from selling. Bitcoin is classified as long-term holder supply once it has been held for more than 155 days, meaning the metric can change depending on whether coins are moved.