Bitcoin’s Long-Term Holders Face Pressure Amid February Sell-Off
- Long-term Bitcoin holders showed weaker accumulation during February’s dip compared to the FTX and LUNA crashes.
- The Long-Term Holder Spent Output Profit Ratio (SOPR) fell below one, indicating veteran investors are realizing losses for the first time since May 2022.
- February’s dip to $62,800 created pressure on long-term holders similar to the May LUNA crash, suggesting a shift in market conviction.
- Glassnode identifies $54,000 as the next critical support level for Bitcoin amid macroeconomic uncertainties.
- Sean McNulty from FalconX suggests that $60,000 could hold as a cycle floor due to strong buying flows and absence of systemic failures like FTX.
Recent macroeconomic data has not clarified Bitcoin’s path forward, with job growth dampening rate cut expectations and inflation slowing to a non-recovery-triggering rate of 2.4%. Despite this, some experts believe that current levels may hold due to healthy buying activity and lack of structural failures in the market.
The SOPR metric falling below one underscores the pressure on long-term holders who are realizing losses similar to past market downturns, highlighting $54,000 as a potential support level if current trends continue. Source
