The recent price pressure on Bitcoin (BTC) seems to be pushing even the most steadfast "diamond holders" to their breaking point. According to a recent on-chain data report released by CryptoQuant analyst Nino, the Bitcoin Long-Term Holder SOPR (LTH-SOPR) indicator has recently begun to trend below the 1.0 threshold. This turning point in key data may indicate a significant shift in the current market environment.
Long-term holders cut their losses and sell, potentially signaling a market capitulation.
Nino explains that the LTH-SOPR indicator specifically excludes short-term holdings of less than 155 days, thereby focusing on tracking the actual profits of experienced long-term investors.
Normally, a value above 1.0 indicates that investors are taking profits; however, the current drop below 1.0 suggests that a growing number of long-term participants are realizing losses at prices below their purchase cost. Analysts warn that even the most patient investors are clearly reacting to the current price pressure, a trend often interpreted in the market as a potential "capitulation" signal.
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