Bitcoin (
Such profit-taking activities could increase significantly, even if spot price only puts in modest growth, a key network metric states.
The latest readings from Bitcoin’s Spent Output Profit Ratio (SOPR) show that further price gains would place BTC/USD in a classic profit-taking country.
SOPR essentially shows the extent to which the BTC supply is being sold in profit or loss. Fluctuating around 1, the ratio tends to be negative during bear markets, and when it crosses 1 while going higher, it signals a supply increase which could, in turn, impact price performance.
“In a bear market, everyone is selling or waiting for the break-even point to sell,” creator Renato Shirakashi explained in an introduction to the metric in 2019:
“When SOPR is close/greater than 1, people start to sell even more, as they reach break-even. With a higher supply, the price plunges.”
As Cointelegraph reported, some on-chain signals suggest that the overall picture is more nuanced.
Binance, the largest exchange by volume, this week saw its biggest-ever BTC balance decrease, indicating that users withdrew over 55,000 BTC in a single day.
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