[Analysis] "Bitcoin’s short-term holder profit metric weak…market confidence shaky"

Bitcoin (BTC) has recently undergone a correction, and short-term holders’ profit metrics have deteriorated.

On the 31st (KST), CryptoQuant contributor “CryptoZeno” said in a report, “Bitcoin’s short-term holder SOPR is hovering near the baseline of 1.0,” adding, “This suggests that market participants’ confidence has been very weak recently.”

Short-term holder SOPR is an indicator that shows whether short-term investors are currently realizing profits or losses. If the metric is above 1, it means they are in profit; conversely, if it is below 1, it indicates they are currently at a loss.

The contributor explained, “Recently, the short-term holder SOPR has been unable to break above 1.0,” adding, “This means short-term holders are reacting very sensitively to price fluctuations and have yet to build sufficient conviction to withstand volatility.” He added, “Demand still does not appear sufficient to absorb supply that entered near the highs.”

Accordingly, the contributor assessed that there is a high likelihood Bitcoin will remain in an unstable state. He stressed, “Until conditions are in place for short-term holders to realize profits stably without immediate selling, the Bitcoin market is likely to remain in a structurally fragile phase,” adding, “If the short-term holder SOPR moves above 1 in the future, it could be interpreted as a sign of improving confidence and a recovery in demand.”