According to ChainCatcher, CryptoQuant analyst Crypto Dan stated that the realized profit/loss ratio (SOPR) for long-term Bitcoin holders has fallen below 1, indicating that even long-term investors are selling at a loss.
Since long-term holders are the least sensitive group to short-term fluctuations, when they begin to incur losses, this can be interpreted as a broader capitulation occurring in the market. At this point, short-term holders have likely already exited the market or suffered significant losses.
In other words, most market participants are currently operating at a loss. Historically, this situation has often led to a gradual exhaustion of selling pressure, forming a market bottom or an area near a long-term low. While it may be too early to conclude that the current market is at an absolute bottom, when losses become widespread, it often signifies the final stage of fear and the beginning of opportunity.
