[Analysis] "Bitcoin, short-term investors' profit indicator weak… Market confidence unstable"

Bitcoin (BTC) has seen a deterioration in short-term investors' profit indicators following a recent correction.

On the 31st (Korean time), CryptoQuant contributor 'Crypto Zeno (CryptoZeno)' said in a report, "The short-term investor SOPR is hovering around the baseline of 1.0," adding, "This suggests that recent market participants' confidence is very low."

The short-term investor SOPR is an indicator that shows whether short-term investors are currently in profit or in loss. If the indicator is above 1, it means they are in profit; conversely, if it is below 1, it means they are currently in loss.

The contributor explained, "Recently the short-term investor SOPR has not been able to break above 1.0," saying, "This means short-term investors are reacting very sensitively to price fluctuations and have not yet secured enough conviction to withstand volatility." He added, "It appears that demand is not yet sufficient to absorb the volume that entered near the highs."

Accordingly, the contributor assessed that Bitcoin is likely to remain in an unstable state. He emphasized, "Until an environment is created in which short-term investors can realize profits stably without immediate sell-offs, the Bitcoin market is likely to remain structurally vulnerable," and "If the short-term investor SOPR later breaks above 1, it could be interpreted as a sign of improved confidence and demand recovery."