Bitcoin Short-Term Holders Near Return to Profitability as STH-SOPR Approaches Critical Level

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Source: CryptoNewsNet Original Title: Bitcoin short-term holders near return to profitability as STH-SOPR approaches key level Original Link: https://cryptonews.net/news/bitcoin/32243225/

Overview

Bitcoin’s Short-Term Holder Output Profit Ratio (STH-SOPR) is climbing toward the key 1 level, signaling that new investors are nearing break-even on their holdings, according to data from CryptoQuant.

Key Metrics Explained

STH-SOPR measures the profitability of transactions by holders who have owned their coins for less than 155 days, comparing selling prices to acquisition costs.

Indicator Signals:

  • Above 1: Holders are realizing profits
  • Below 1: Loss realization is occurring

Market Significance

A sustained breakout above the 1.0 threshold has historically marked the end of market shakeouts and the return of positive momentum for Bitcoin. This milestone would signal a shift from loss-realization to organic profit-taking, potentially confirming that a market bottom is in place.

Current Price Action

Bitcoin was trading close to $91,000 at press time, down about 2% in the last 24 hours. The crypto asset had climbed above $94,000 earlier in the week before pulling back.

BTC2,95%
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