BTC’s rally above $70k has pushed the value of a key metric above 1, signaling that the coin’s short-term holders are sitting on profit. Bitcoin’s short-term holders now hold their coins at a profit.
BTC’s future open interest has risen to a two-month high. Bitcoin’s [BTC] Spent Output Profit Ratio (SOPR) for its short-term holders (STH) has rallied above 1, signaling that this cohort of investors now holds their coins at a profit.
In a new report, pseudonymous CryptoQuant analyst Phi Deltalytics found that the uptick in this metric’s value above 1 suggests the presence of “bullish sentiment in the market.”
BTC’s STH-SOPR measures whether investors who have held the coin for three to six months are selling at a profit or a loss. When it returns a value above 1 such as this, it indicates that short-term holders, on average, are selling their coins at a profit. Conversely, if the STH-SOPR is below 1, it suggests that these holders are selling at a loss.
At $35 billion at the time of writing, BTC’s futures open interest sat at its highest level since March.
