- Bitcoin’s short-term holders are now holding on to their coins at a profit.
- BTC future open interest has risen to a two-month high.
Bitcoins [BTC] The Spend Output Profit Ratio (SOPR) for the short-term holders (STH) has risen above 1, indicating that this cohort of investors is now holding their coins at a profit.
In a new report, pseudonymous CryptoQuant analyst Phi Deltalytics found that the increase in this measure’s value above 1 indicates the presence of “bullish sentiment in the market.”
BTC’s STH-SOPR measures whether investors have held the coin for three to six months sell at a profit or loss.
When it returns a value above 1, like this, it indicates that short-term holders are selling their coins for a profit on average. Conversely, if the STH SOPR is less than 1, it indicates that these holders are selling at a loss.
Why the value above 1 is significant
According to CryptoQuant’s according to data, BTC’s STH-SOPR was 1.019 at the time of writing.
Source: CryptoQuant
Before this metric stabilized at this point, it had fallen to level 1 but did not fall below it, Deltalytics found.
According to him, when that happened, the currency was trading at a price at which sellers were neither making nor losing money. This led to many market participants holding on to their coins rather than selling them. This was a positive sign for the market and indicated low selling pressure.
The analyst added that BTC’s STH-SOPR should remain above 1. If this happens, the market will “absorb” any profit-taking by sellers without the risk of a significant price drop.
Deltalytics predicted that this could promote the sustainability of BTC’s current price appreciation:
“With the market not being too heated, this dynamic has the potential to push the price of Bitcoin higher.”
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BTC amid the recent price rally
The leading coin has benefited from the market rally over the past 24 hours. At the time of writing, BTC was trading at $71,212, and the price had risen 6% in that period.
The reporting period was characterized by a significant increase in trading activity on the BTC derivatives market. According to Mint glass’ According to data, BTC derivatives volume has increased by 112% in the past 24 hours.
At $35 billion at the time of writing, BTC open interest was at its highest level since March.