Data indicates that Bitcoin investors with a long-term outlook are still able to sell at a profit while short-term holders are experiencing a drastic decline.

Long-Term Investors Still Making Profits

An analysis by CryptoQuant’s Head of Research Julio Moreno highlights the capitulation of short-term Bitcoin holders during the recent market downturn.

Bitcoin users are categorized into two main groups based on holding time: short-term holders (STHs) and long-term holders (LTHs), with a division cutoff at 155 days.

Generally, long-term holders are less likely to sell or transfer their coins compared to short-term holders. This makes short-term holders more susceptible to market fluctuations.

During the recent market crash, both STHs and LTHs reacted differently, as depicted by the “Spent Output Profit Ratio” (SOPR) indicator.

The SOPR indicates whether a group is currently selling Bitcoin at a profit or loss. Values above 1 suggest profit-taking, while values below indicate selling at a loss.

Recent data shows that short-term holders have been selling at a loss, with the SOPR dipping below 0.8 at one point, indicating a panic-induced selloff.

In contrast, long-term holders have been consistently profiting from their Bitcoin holdings, with the SOPR holding above 1 even during the market rebound, demonstrating their resilience and profit-taking strategies.

Bitcoin Price Movement

Currently, Bitcoin is trading around $55,000, showing a decrease of more than 17% over the past week.