Since May 8th, STH have finally moved back into profit territory as Bitcoin crossed above $99 A000.
Their SOPR (Spent Output Profit Ratio) has been above 1 since that date, indicating that they are selling at a profit.
It’s important to understand that short-term holders being in profit is essential to sustaining bullish momentum.
Given that this category of investors is quite sensitive to market fluctuations, when they find themselves in a comfortable position, they are more likely to hold longer in the hope that their profits will continue to increase.
Of course, when SOPR starts reaching higher values (~1.03), it also signals that selling pressure is building up.
In such a context, securing some profits makes sense, but for now, that’s not what’s happening.
It feels like we’re just getting warmed up.
Written by Darkfost
