Looking at $BTC SOPR (Spent Output Profit Ratio) one of powerful on chain metric that provides insight into the behavior of short-term Bitcoin holders (those holding for less than 155 days) and their profitability or losses when moving coins.

A value above 1 indicates short-term holders are selling at a profit, while below 1 suggests they're selling at a loss.

The SOPR dipping below 1, as seen in early 2025, indicates short term holders are selling at a loss.

This often happens during market downturns or capitulation events, where weaker hands panic-sell, potentially creating a buying opportunity for longer-term holders.

The price has dropped from its peak to $84,500, aligning with the SOPR falling below 1. This suggests selling pressure from short-term holders, possibly exacerbated by leverage liquidations or fear-driven selling.

Look at past instances where SOPR fell below 1 (e.g., late 2022, mid-2023, Aug 2024). These periods often marked local bottoms or accumulation zones, followed by price recoveries as selling pressure subsided and buyers stepped in.