On August 7, CryptoQuant analyst Axel Adler Jr. published a note stating that bitcoin's long-term holders appear to be capitulating, based on the cohort's Spent Output Profit Ratio (SOPR) dropping to 0.92. The SOPR is a metric used to gauge whether bitcoin moved on-chain is being spent at a profit or a loss; a value below 1 suggests that holders are selling at a loss. According to the analyst, the reading of 0.92 looks like capitulation among long-term holders. However, Adler also pointed out that the bitcoin price is still 30% above the average cost basis of these long-term holders, which stands at $49,300. This means that, on average, the group still holds their coins at a profit despite the capitulation reading. The analyst further noted that the main pressure in the market remains concentrated on short-term holders. Adler's assessment was shared via a post on August 7. The comments were reported by BlockBeats.
CryptoQuant analyst Axel Adler Jr. said that bitcoin long-term holders appear to be capitulating, as the cohort's Spent Output Profit Ratio (SOPR) dropped to 0.92.
The analyst added that bitcoin's price is still 30% above the group's average cost basis of $49,300. This means long-term holders are, on average, in profit even as the SOPR reading points to capitulation. According to Adler, the main pressure in the market remains on short-term holders.
BlockBeats reported the analyst's comments on August 7.
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