Bitcoin data: Long-term owners are currently putting more selling pressure than short-term owners

On-chain data suggests that Bitcoin long-term holders are currently putting more selling pressure on the market than short-term holders.

Bitcoin long-term holding SOPR has increased in recent days

As explained by an analyst in a CryptoQuant post, short-term holders and US investors have not sold as much recently as in early June.

The relevant indicator here is the “Spent Output Profit Ratio” (SOPR), which tells us whether investors in the Bitcoin market are selling at a profit or a loss right now.

When the value of this metric is greater than 1, it means that the average holder is moving their coins with a certain profit at the moment.

On the other hand, the indicator’s value being less than the threshold means that the market as a whole is currently realizing some loss.

There are two popular categories of Bitcoin investors, “Short-Term Holders” (STHs) and “Long-Term Holders” (LTHs).

The former group of holders includes all those investors who have held their coins since less than 155 days ago, while the latter group consists of hodlers who have held their coins quietly since more than that.

Now, here is a chart showing the trend in Bitcoin SOPR specifically for the LTHs:

The 7-day moving average value of the metric seems to have risen in recent days | Source: CryptoQuant

As you can see in the graph above, BTC LTH SOPR has increased recently while its price has decreased, suggesting that some older, more profitable coins have just been displaced by this cohort.

However, STH SOPR has fallen down in recent days. The chart below shows this trend.

Looks like the value of the metric has seen some decline recently | Source: CryptoQuant

The contrast between the two SOPRs may mean that there is more selling pressure from the LTHs compared to the STHs.

Finally, the quantum also talks about Bitcoin Coinbase Premium in the post. This indicator measures the difference between the price listed on Coinbase and that on Binance.

Since Coinbase is used more by US investors, while Binance sees a more global audience, Premium can tell us if US investors are selling or buying more compared to the rest of the world.

The metric has approached a neutral value in the last week or so | Source: CryptoQuant

As the graph shows, Bitcoin Coinbase Premium has been around zero lately, indicating that there is no extraordinary selling (or buying) pressure coming from US investors right now.

BTC price

At the time of writing, Bitcoin’s price is hovering around $19.7k, down 8% in the last week.

BTC continues sideways movement | Source: BTCUSD on TradingView

Featured image from André François McKenzie on Unsplash.com, charts from TradingView.com, CryptoQuant.com