Will the Bitcoin Sell-Off Begin? Short Term Holder SOPR Reaches Highest Level Since November 2021
Bitcoin’s short-term holder SOPR (Spent Output Profit Ratio) has hit its highest level since November 2021, according to a recent report by CryptoQuant. The SOPR, which represents the profit ratio of BTC spent on a particular day, is a metric used to determine whether holders are selling at a profit or loss.
While a SOPR value over 1.0 indicates short-term holders are selling at a profit, values above 1.1 have historically been a warning sign of an exhausted move to the upside. However, the recent increase in short-term holders selling at current levels is not necessarily an indication of an imminent sell-off, and could actually point towards more upward price movement in the near future.
Investors and analysts are monitoring the situation closely, especially with the upcoming FOMC meeting and the potential for increased market volatility. Some experts suggest that if Bitcoin surpasses the $30,000 mark, more short-term holders may decide to sell, especially given the highly optimistic price predictions of BTC reaching $250,000 or even $1 million within the next 90 days.
While the SOPR value may not be a definitive signal for BTC investors, it is still an important metric to watch. As always, investors should keep a close eye on market trends and sentiment, and make informed decisions based on their own risk tolerance and investment goals.
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