According to data from Glassnode, long-term holders of Bitcoin have made profits for the first time in nearly a year. Historically, a return to profitability for long-term holders has heralded significant market gains. The seven-day average Bitcoin holders’ spending output profit margin (LTH-SOPR) exceeded 1 for the first time since May 2022. An SOPR ratio above 1 indicates that, on average, moving Bitcoins are being sold at a profit. LTH-SOPR focuses on cryptocurrencies that have a lifespan of at least 155 days as they move on-chain.
Glassnode analyst James Check said in the latest weekly report: "Changes in the SOPR indicator of long-term holders tend to better reflect changes in the macro market. After a longer period of realized losses (LTH-SOPR < 1), the LTH group finally returned to profitable spending, and the structure again resembled past cycle transition points." Previous crossovers for this ratio were in May 2020, May 2019, and November 2015, also This coincided with a market recovery rebound that ultimately translated into a multi-year bull market. (CoinDesk)
