[Analysis] "Bitcoin short-term investors move to cut losses amid continuing cold snap"

Bitcoin (BTC) short-term investors appear to be selling while accepting losses.

On the 26th (Korean time), CryptoQuant contributor 'XWIN Research JAPAN' said in a report, "Currently Bitcoin is remaining in a box range after the decline," and "in particular, short-term investor SORP has remained below 1 in recent weeks."

The SORP ratio is an indicator that judges whether the market is making profits or losses based on the profits investors have obtained by selling virtual assets such as Bitcoin. If SOPR is above 1, it means investors are realizing profits, and if it is below 1, it indicates they are realizing losses.

The contributor said, "This December, unlike the past few years, short-term investor SOPR has consistently maintained 0.97–0.99," and added, "This is due to cycle-level stress." He went on to say, "Poor price performance compared to the beginning of the year, higher average prices after the launch of exchange-traded funds (ETFs), and large liquidations in the derivatives market are the causes."

However, he explained that it is difficult to conclude that additional declines will occur immediately. The contributor emphasized, "Long-term investors are still mostly on the sidelines, and movements of old digital assets are limited," and "if short-term investor SOPR recovers to 1 and the increase in realized losses slows, a pivot could occur."