CryptoQuant: Key Bitcoin Market Indicator Falls Below Break-Even Level
According to experts, this means that short-term Bitcoin holders have once again started selling assets at a loss. Until early September, the SOPR value had remained above the “1” mark — the break-even level — for more than four months, signaling retail speculators’ confidence in the cryptocurrency’s positive trend.
“The decline of the indicator, which is used to analyze investors’ profit and loss status in Bitcoin, signals a loss of confidence among investors. Despite Bitcoin’s rise from $60,000 to $125,000, the past year has not seen the characteristic spikes that typically accompany phases of euphoria,” the experts noted.
In previous cycles, a significant rise in SOPR coincided with periods of “extreme greed” and massive retail investor participation. This time, retail investors show no such activity, and the market is sustained solely by institutional players.
The absence of this signal suggests that the long-term trend remains intact, and the current wave of losses may represent only a pause within a broader bull cycle. If the SOPR indicator climbs back above “1,” the likelihood of the uptrend continuing will increase, and the Bitcoin market could reach new highs, CryptoQuant specialists concluded.
Earlier, BitMEX co-founder and former CEO Arthur Hayes said that Bitcoin investors should abandon hopes of making quick profits from their investments in the world’s first cryptocurrency.
See also: "Ethereum Foundation Unveils Privacy Roadmap for Ethereum Blockchain"
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