SOPR Shows Bitcoin Holders Continue To Sell At A Loss, Similar To May-June 2021

Keshav Verma

1 year ago

3 mins read

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The on-chain indicator SOPR suggests that Bitcoin holders have continued to sell at a loss for a while now. This behavior is similar to what was seen during the May-June 2021 mini-bear period.

Bitcoin Investors Have Continued To Dump At A Loss For A Month Now

As pointed out by an analyst in a CryptoQuant post, the BTC SOPR shows that holders are currently selling at a loss.

The “Spent Output Profit Ratio” (or SOPR in short) is an indicator that tells us whether coins moved on a given day were sold at a profit or a loss.

The metric measures so by looking at each coin on the chain and checking what the price the coin was last moved at. After that, the indicator calculates the ratio between this price and the current price.

When the value of the indicator is above one, it means that holders are currently selling, on an average, at a profit.

On the other hand, when the SOPR has values less than one, it implies investors are moving their Bitcoin at a loss overall.

Finally, there is the case when the value of the indicator is exactly equal to one. During such a period, the market is breaking even on BTC sales.

Now, here is a chart that shows the trend in the value of the Bitcoin SOPR over the past year:

Looks like the value of the indicator has stayed below one recently | Source: CryptoQuant

As you can see in the above graph, the Bitcoin SOPR currently has a value less than one, which means holders are selling at a loss.

Such a trend has been there for a month now. A similar situation was there after the May 2021 crash where the indicator stayed below one for a prolonged period of time.

It’s possible that the current trend of low SOPR values will continue for a while, just like back then. The period around May-June was marked by a mini-bear market, and so if the trend does repeat, a similar bear environment could follow in the near future.

BTC Price

Yesterday, Bitcoin’s price briefly declined below the $40k mark, but since then has jumped back up. At the time of writing, the price of the coin floats around $41.7k, down 10% in the last seven days. Over the past month, the crypto has lost 13% in value.

The below chart shows the trend in the price of BTC over the last five days.

BTC's price has continued to move sideways above $40k in the last few days | Source: BTCUSD on TradingView

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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