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Analysis: Bitcoin short-term holders start realizing losses, market leans toward capitulation or a brewing buying opportunity.

13 minutes ago

CryptoQuant analyst Darkfost points out that the losses of short-term holders (STH) are starting to show on the SOPR (Spent Output Profit Ratio) indicator. This metric measures realized profit or loss when unspent transaction outputs (UTXOs) are spent; the STH’s SOPR has now dropped to 0.98. The indicator has remained in negative territory since October 30, meaning short-term holders are beginning to feel pressure from falling prices. Previously, the monthly average SOPR for this group hit 1.013, but it has now just fallen back to the neutral level of 1, indicating their average profits have largely evaporated. Combining recent data, the analyst believes the market is leaning toward "capitulation" and panic selling. Against the backdrop of a longer-term bull market, a SOPR drop into negative territory often signals a strong buying opportunity. However, the current monthly average has not yet reflected extreme panic, suggesting the current capitulation trend may persist for several days until it reaches a truly extreme level.

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