Bitcoin took a turn for worse this year. Dropping to levels not seen since January 2021, the king coin suffered significant losses. While it did project signs of steady recovery, it is interesting to see that the old hands remain confident during the current market-wide route.
In fact, the latest panic sell-off saw the newbies unload their Bitcoins and not the long-term hodlers who pretty much remained unfazed. As revealed in the weekly edition of Glassnode, the market entrants have panic sold and sustained substantial losses as a result. Both the aSOPR and STH-SOPR falling below 1.0 once again was indicative of the fact.
Notably, the two metrics examine the degree of profit realized by coins moving on-chain. Higher the values, more profitable coins were on the move. On the other hand, values below 1.0 depict most coins were on the move last time at higher prices. The blockchain intelligence platform explained,
“The aSOPR metric considers the entire market, whilst also filtering out all coins with a lifespan less than 1hr (which are generally temporary hops and thus economically unimportant). The STH-SOPR filters for only coins younger than 155-days and is, therefore, representative of entities who bought coins during the current bull market cycle.”
Bitcoin Accumulation Picks Up Again
As observed in the chart below, both the metrics took a plunge below 1.0 closely mimicking the price action of the crypto-asset. This demonstrated that the aggregate losses have been realized on-chain. The fall was observed more in the case of the STH-SOPR which is its second major dip below 1.0 during Bitcoin’s latest pullback which indicated a widespread panic selling by novice holders.
Right after the dip, the total count of addresses holding a non-zero BTC balance also reversed by almost 3% from the recently established peak of 38.7 million addresses. A total of 1.1 million addresses have sold their coins they held during this correction. Meaning, the long-term hodlers are buying the crypto-asset as its gains stalled.