Categories: Market

Latest Profit and Loss Trends in Bitcoin Market

In this article, let’s examine the latest profit and loss trends in the market based on various on-chain metrics and dynamics such as Return on Output Ratio (SOPR), Long-Term Hodler Cost Base, and Amount of Bitcoin Spent.

SOPR

The first is the return on expenditure spent, which is the actual amount of profit or loss for all of the coins moving in the chain. If SOPR tends to be higher, profit is made (value greater than 1). If it tends down, losses are realized (value less than 1). We use adjusted SOPR, which ignores all expenses for a lifetime of less than an hour.

Bitcoin-adjusted SOPR. Source: Glassnode

During the upswing in Q4 2020, we saw strategic gains, which becomes more apparent if you just look at the long-term SOPR hodler. After the subsequent period of higher profit taking and summer losses, the Hodler finds itself in a more compact profit and loss range of 3% to 5%, which signals that the market is waiting for the next step: Bitcoin.

Bitcoin’s long-term SOPR hodler. Source: Glassnode

Cost base

Over the past few months, long-term owners have seen little returns on their coins sold (compared to all-time highs earlier in the year), showing an increase in the cost base. During the bull market, long-term hodlers have benefited from 300% to 500% by selling much older coins at a lower cost base. Now those profits are starting to decline as the cost base climbed from $ 6,800 in June to $ 14,500.

The cost base of the long-term bitcoin hodler. Source: Glassnode

During the last few days of sell-off, the volume of Bitcoin issued from coins older than a year made up less than 0.5% of the total. Long-term coins, “smart money”, held on to price fluctuations fueled by the failure of Evergrande and a sharp correction in the S&P 500.

In contrast, at the same price, 3.5% of the volume spent in January shows that the long-term hodelr is quite patient. This is an increasing development and support for the arc compression thesis. The number of freely circulating coins available in the market continues to decline while long-term holders continue to sit on the sidelines.

Bitcoin volume spent> 1 year (30 day MA). Source: Glassnode

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Annie

According to Bitcoinmagazine

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

CoinX

Recent Posts

Best New Meme Coins to Join for 2025: BTFD Coin Leads, Popcat Keeps It Purr-fect, and Non-Playable Coin Hits Gamers Hard

Discover the Best New Meme Coins to Join for 2025. BTFD Coin's price rollback offers…

4 minutes ago

Solana memecoins crash while DTX Exchange hits 100,000 TPS on layer-1 blockchain

Discover how DTX Exchange's historic achievement of 100,000 transactions per second on a layer-1 blockchain…

49 minutes ago

Strategic Bitcoin Reserve Expected to Cut 35% of US National Debt by 2049

VanEck suggests the U.S. could reduce its national debt by 35% by 2050 through a…

56 minutes ago

The New Lead of Presidential Crypto Council Appointed by Trump Is Bo Hines

President-elect Donald Trump named Bo Hines as the executive director of the presidential crypto council.

1 hour ago

Best New Meme Coins with 1000X Potential: BTFD Coin’s Hot BIG50 Discount As Baby Doge Coin, Dogs Takes Gaming to the Next Level

Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…

2 hours ago

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

4 hours ago

This website uses cookies.