The Bitcoin SOPR indicator recently fell below 1.0, indicating that holders are reducing their positions at a loss

Glassnode data shows that Bitcoin's Spent Output Profit Ratio (SOPR) has experienced significant fluctuations throughout 2024. The SOPR has been hovering around or above 1.0, indicating that most outputs are profitable sales. Note: SOPR was created by Medium user Renato Shirakashi in April 2019 to measure the extent of investors' profits or losses. However, in recent months, this ratio has seen a sharp decline, especially in early July and August when it fell below 1.0. This shift suggests that during this period, Bitcoin holders were selling at a loss, possibly due to broader market adjustments. Looking at the long-term trend since 2018, SOPR is closely related to the price trend of Bitcoin and usually soars during periods of substantial price increases. Recent performance of SOPR indicates that the market is struggling to cope with fluctuations after the Bitcoin halving event.