Analysis: Bitcoin Profitability Metric Falls to Two-Year Low, Potentially Indicating a Local Bottom
An on-chain analytics platform reported that the Bitcoin SOPR ratio (LTH-SOPR / STH-SOPR) has fallen to 1.35, its lowest level since early 2024. This decline coincides with Bitcoin's price pullback to $89,700.
A higher ratio typically indicates that long-term holders (LTH) are actively profiting compared to short-term holders (STH). The plunge to 1.35 suggests that the large-scale distribution phase of older coins has significantly subsided. The actual profit gap between experienced and new entrants is narrowing. This decline suggests a large-scale market "reset," with the speculative bubble that previously drove the ratio up being deflated.
Historically, when the SOPR ratio falls to these lower limits during an overall bull market cycle, it usually foreshadows the exhaustion of the sell-off. If the ratio stabilizes or rebounds from the 1.35 level, it may indicate that a local bottom is forming, laying a more solid foundation for the next round of gains.
