On-chain data shows that bitcoin long-term holders are currently putting more selling pressure on the market than short-term holders.
Bitcoin Long-Term Holder SOPR Has Increased in Recent Days
As explained by one analyst in a Cryptoquant post, short-term holders and US investors have not sold as much as they did at the beginning of June.
The relevant indicator here is the “Spent Output Profit Ratio” (SOPR), which tells us whether investors in the bitcoin market are selling at a profit or loss.
When the value of this metric is greater than 1, it means that the average holder is moving their coins at some profit at the moment.
On the other hand, a value of the indicator below the threshold means that the market is currently experiencing some losses.
There are two popular categories of bitcoin investors, “short-term holders” (STH) and “long-term holders” (LTH).
The former holder group includes all investors who have been holding their coins for less than 155 days, while the latter group is made up of holders who have held their coins stable for longer than that.
Now, here is a chart that shows the trend in Bitcoin SOPR specifically for LTH:
The 7-day moving average value of the metric seems to have risen in recent days | Source: CryptoQuant
As you can see in the above graph, the BTC LTH SOPR has recently risen while the price has declined, indicating that some of the older, more profitable coins have just been moved by this group.
However, the STH SOPR has declined over the past few days. The chart below shows this trend.
Looks like the value of the metric has seen some decline recently | Source: CryptoQuant
The difference between the two SOPRs could mean that more selling pressure is coming from LTH than STH.
Lastly, Quantum also talks about bitcoin Coinbase Premium in the post. This indicator measures the difference between the prices listed on Coinbase and Binance.
Since Coinbase is used more by US investors while Binance has a more global audience, the premium can tell us that US investors are selling or buying more than the rest of the world.
The metric has approached a neutral value in the last week or so | Source: CryptoQuant
As the graph shows, the bitcoin coinbase premium has been almost zero lately, indicating that there is no extraordinary selling (or buying) pressure coming from US investors right now.
btc price
At the time of writing, bitcoin is priced around $19.7k, down 8% over the past week.
BTC continues sideways movement | Source: BTCUSD on TradingView
Featured image from André François McKenzie on Unsplash.com, charts from TradingView.com, CryptoQuant.com