"Bitcoin short-term investors sell at a loss again after four months… healthy correction phase"

There are observations that short-term Bitcoin (BTC) holders are realizing losses again after four months. Market analysts say that despite a contraction in short-term investor sentiment, the long-term uptrend remains valid.

On the 12th, Gaah, an analyst at on-chain crypto analysis firm CryptoQuant, said, "The SOPR (Spent Output Profit Ratio) of short-term holders has fallen below the breakeven point of 1," adding, "This means short-term investors are again selling in loss territory." SOPR is an indicator that measures whether a coin was sold at a profit or a loss; above 1 indicates profit realization, 1 or below indicates loss realization.

Gaah explained, "Even though Bitcoin's price more than doubled over the past year from $60,000 to $125,000, SOPR continued to decline, and the 'extreme greed'-driven surge seen in past cycles was not confirmed." He added, "This shows that this rally has been supported more by solid institutional/long-term capital than by short-term speculative funds."

He also analyzed, "Past market peaks (tops) formed when SOPR reached extreme greed territory, but such a phenomenon did not appear in this cycle," and said, "This loss realization is more likely a healthy correction within a bullish phase."

He went on to forecast, "If Bitcoin secures a solid support level and SOPR recovers above 1 again, the trend-like uptrend could continue toward new highs."