Short-term holders (STH) of Bitcoin are currently selling their holdings at a loss, as the STH SOPR (Short-Term Holder Spent Output Profit Ratio) indicator has turned negative. This indicator reveals changes in the profitability trend of STH by comparing the 30-day STH SOPR with its 365-day average. Historically, such a situation often coincides with significant turning points in the market, potentially signaling a good entry opportunity for long-term investors or an increase in short-term risks. As the STH SOPR enters the negative territory, market pressure increases, but it may also provide accumulation opportunities for long-term investors. Two scenarios may emerge in the market: STH may choose to hold rather than sell at a loss, stabilizing Bitcoin prices; or they may continue to sell, leading to a deeper market correction. Historically, a negative STH SOPR has often coincided with key turning points in the Bitcoin market, and although short-term uncertainty increases, a bullish outcome may emerge in the long run.

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Bitcoin [BTC] short-term holders are now selling their holdings at a loss, with the Short-Term Holder Spent Output Profit Ratio (STH SOPR) multiple turning negative.This metric, which compares the 30-day STH SOPR to its 365-day average, highlights a shift in STH profitability trends.Historically, such moments have coincided with significant market turning points, signaling either attractive long-term entry opportunities or heightened short-term risks.What the STH SOPR reveals about BTCThe STH SOPR measures whether Bitcoin short-term holders are selling at a profit or a loss. By comparing the 30-day STH SOPR to its 365-day average, this metric provides a clear trend of STH profitability.Recent data has revealed that the STH SOPR multiple has entered negative territory, indicating that STHs are selling at a loss.Historically, such dips often reflect growing market stress but can also present accumulation opportunities for long-term investors.The chart highlighted this shift, with the recent drop below 1.0 signaling waning confidence among STHs.As this trend unfolds, it raises questions about whether STHs will continue to sell, deepening market corrections, or hold firm, creating a potential price floor.Potential market outcomes amid STH lossesAs Bitcoin short-term holders begin realizing losses, two possible scenarios could shape the market trajectory.In the first scenario, STHs may opt to hold rather than sell at a loss, allowing their realized price to act as a strong support level. Such behavior could stabilize Bitcoin’s price and provide a foundation for recovery.Conversely, a wave of capitulation may occur if STHs continue to offload their holdings. This could amplify selling pressure and trigger a deeper market correction.Historically, such capitulation events often coincide with heightened volatility, but they may also signal attractive entry points for long-term investors.The unfolding trend will depend on broader market sentiment and the behavior of other market participants.Historical context and long-term outlookHistorically, negative STH SOPR multiples have coincided with critical turning points in Bitcoin’s market.For instance, during the March 2020 COVID-19 market crash, the STH SOPR fell into negative territory, signaling short-term holders capitulating at a loss.This period later proved to be one of the most lucrative entry points, as Bitcoin surged from $4,000 to over $60,000 within the following year.Similarly, in mid-2018, as Bitcoin retraced from its $20,000 peak, the STH SOPR showed sustained negative readings.Although it indicated capitulation at the time, it marked the accumulation phase before Bitcoin’s rally to new all-time highs in 2020.Read Bitcoin’s [BTC] Price Prediction 2025–2026For long-term investors, these negative SOPR phases have often preceded significant recoveries, as selling pressure subsides and accumulation begins.While the current trend reflects short-term uncertainty, historical patterns suggest potential for bullish outcomes over an extended horizon.

Short-term Bitcoin holders sell at a loss as the market faces uncertainty.