CryptoQuant's latest data paints a grim picture for Bitcoin: long-term holders (LTHs) are offloading coins at the fastest pace since the 2023 bear market. With BTC trading over 45% below its all-time high of $126,000, this prolonged correction is squeezing even the most resilient investor cohort.
LTH-SOPR Drops Below 1 as Losses Mount
The LTH Spent Output Profit Ratio (SOPR) – a key metric tracking realized profit/loss when LTHs spend – has plunged to 0.88, breaking below the breakeven threshold of 1. This means LTHs are now selling at an average loss, a level not seen since the 2023 bear market ended. Although the annual average LTH-SOPR remains high at 1.87, the rapid decline signals growing financial stress among this traditionally resilient group.
Binance Inflows Surge to Double the Average – A Clear Sell Signal
Coinciding with the rising losses, daily Bitcoin inflows from LTHs to Binance have surged to roughly twice the annual average. Charts show this abnormal spike has persisted over recent weeks, accelerating a trend that first emerged after the previous all-time high. Binance's superior market depth and liquidity make it the preferred exchange for large-scale distribution.
Analysts interpret this behavior as a sign that even the strongest hands are actively reducing exposure, suggesting the market adjustment phase is far from over. With LTH selling pressure intensifying, BTC faces further headwinds in the short to medium term.