Bitcoin experienced a significant drop below $58,000 recently due to extensive profit-taking by long-term holders, according to on-chain data. The "Spent Output Profit Ratio" (SOPR), which gauges whether investors are selling at a profit or loss, revealed that long-term holders (LTHs) who had held their coins for more than 155 days sold off a large number of previously profitable coins. This selling activity is indicated by SOPR spikes above 1, with some values exceeding 10, signifying profits over ten times the related losses. The LTH segment most responsible for this sell-off was holders of coins from 5 to 7 years ago. As of the latest updates, Bitcoin recovered to $57,700 after briefly dipping below $57,000.
Bitcoin Drops Below $58,000 as Long-Term Holders Take Profits
On-chain data shows that extensive profit-taking by long-term Bitcoin holders has pushed the price below $58,000. The 'Spent Output Profit Ratio' indicates that holders of coins from 5 to 7 years ago are among the major sellers, with some profits exceeding ten times the losses. Despite the drop, Bitcoin has recovered to $57,700 from below $57,000.