Bitcoin Long-Term Holder Profitability Indicator Falls Below Key Threshold

Bitcoin's long-term holder profitability indicator (LTH-SOPR) has recently fallen below the critical threshold of 1. According to ChainCatcher, this metric, analyzed by CryptoQuant analyst nino, specifically tracks the actual profit and loss status of investors holding Bitcoin for more than 155 days. A value above 1 indicates that holders are selling at a profit, while a value below 1 suggests that long-term holders are exiting at a loss. The current drop below 1 signifies that an increasing number of seasoned holders are under pressure to sell at a loss. This situation may indicate that the market is approaching a 'capitulation' phase, where even the most patient long-term holders begin to react to price pressures. This phase is often considered an important signal in the process of finding a market bottom.