Bitcoin SOPR index has recently fallen below 1.0, indicating that holders are losing money and reducing their positions.

Glassnode data shows that Bitcoin's Spent Output Profit Ratio (SOPR) has seen significant fluctuations throughout 2024. SOPR has been hovering around or above 1.0, indicating that most output is sold at a profit. Note: SOPR was created by Medium user Renato Shirakashi in April 2019 to measure the extent to which investors are making profits or losses. However, the ratio has seen a sharp drop in recent months, especially in July and early August, when it fell below 1.0. This shift suggests that Bitcoin holders sold at a loss during this period, possibly due to a broader market correction. In terms of long-term trends since 2018, SOPR has been closely correlated with Bitcoin's price action, often surging during periods of significant price increases. The recent performance of SOPR suggests that the market is struggling to cope with the volatility following the Bitcoin halving event. (CryptoSlate)