On-chain data shows Bitcoin short-term holder profit-taking has spiked, will this lead to a correction in the price of the crypto?
Bitcoin Short-Term Holder SOPR Has Surged Recently
As pointed out by an analyst in a CryptoQuant post, instances of the current trend have led to declines in the crypto’s price in the past. The relevant indicator here is the “Spent Output Profit Ratio” (SOPR), which 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 the holders as a whole are realizing some profits on their selling currently. On the other hand, values below the threshold suggest the overall market is leaning