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BTC SOPR sees profits as whales and short-term holders make these moves

  • According to recent data, short-term holders of Bitcoin (BTC) have been profiting from the recent price surge.
  • Whales are also spending more of their BTC holdings, and there has been an increase in the number of addresses holding over 10 BTCs.

As the price of Bitcoin [BTC] experienced a surge, a potential new support level may be emerging. Also, the possibility of a breakthrough in its press time price range could not be discounted. 

Read Bitcoin’s [BTC] Price Prediction 2023-24

These noteworthy market movements could largely be attributed to the actions of short-term traders and whales.

BTC SOPR in profit zone

CryptoQuant’s data revealed that the recent spike in Bitcoin’s price had provided short-term holders with a window of opportunity to cash in on their investments and take some profits. The data also suggested that some holders took advantage of this price surge and exited their positions at its realized price.

Source: CryptoQuant

At the time of writing, the Short-Term Holder SOPR (Spent Output Profit Ratio) for Bitcoin holders had surpassed the value of one. This particular SOPR, which measures the profit margin of short-term holders, is computed by dividing the realized value of sold outputs (the selling price) by the cost basis of those outputs (the buying price).

A SOPR value exceeding one signifies that, on average, short-term holders are selling their Bitcoin at a profit.

Bitcoin spending from whales increases

Furthermore, the spent output value bands metric on CryptoQuant indicated that whales increasingly spent their Bitcoin holdings. As of this writing, the spent output value band for whales holding between 1,000 to 10,000 BTCs had already exceeded 220,000 BTCs. The chart also indicated that the spending activity of these high-volume investors climbed in March, and has been on an upward trajectory since.

By monitoring the proportion of spent outputs in each value band over time, one can glean valuable insights into the behavior of various market participants. 

BTC holders on the increase 

Besides the rise in spent output by whales, there has been a surge in the number of Bitcoin addresses holding over 10 BTCs. According to data from Santiment, this number has been steadily increasing since 2022, having witnessed a staggering growth of over 70%.

While the overall percentage of available BTC held by these wallets has remained relatively constant, the total amount held by these wallets was nearing the all-time high recorded in September 2019. 

As of this writing, there were approximately 155,000 addresses that held over 10 BTCs. The trend indicated that more large investors were accumulating Bitcoin. The accumulation was possibly a hedge against inflation or a long-term investment strategy.

MVRV and price flash positives

As of this writing, Bitcoin was trading at approximately $28,600 on a daily timeframe, experiencing a modest gain of almost 1%. Upon closer inspection of the chart, a new support level could emerge around the $27,500 and $26,600 price range. The potential support level indicated a shift in market sentiment and could lead to a new range breakout if the bulls could hold the price above this support level.

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The 30-day Market Value to Realized Value ratio (MVRV) examination showed that BTC was above 12% at press time. It indicated that buyers who acquired Bitcoin in the last 30 days and decided to sell their holdings would do so at a profit at the time of writing. This level aligned with the profit realized by short-term holders, as indicated by the SOPR. 

Thus, moving forward, the actions of holders will likely play a significant role in determining the direction of BTC’s next price move. 

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