Bitcoin SOPR Ratio Hits Lowest Level Since Early 2024

According to BlockBeats, CryptoOnchain announced on social media that the Bitcoin SOPR ratio has dropped to 1.35, marking its lowest point since early 2024. As Bitcoin retraced to $89,700, this indicator suggests a complete reset of market profitability. The phase of significant profit-taking by long-term holders is diminishing, indicating that selling pressure is nearing exhaustion. Historical data shows that when the market cools down, a SOPR ratio decline to such low levels often signals the formation of a local bottom. If a trend reversal occurs at this time, it could lay the foundation for the next healthy upward market movement. BlockBeats notes that the Bitcoin SOPR Ratio is an advanced indicator in cryptocurrency on-chain analysis. It is derived from the Spent Output Profit Ratio (SOPR) and is primarily used to assess whether the market is predominantly in a profit or loss state, aiding in determining the stage of bull and bear cycles.