Bitcoin (BTC) has plunged to around $60,000, triggering a significant behavioral shift among its most steadfast investors. According to on-chain analytics firm Glassnode, the cohort of long-term holders (LTHs) has begun selling their Bitcoin at a loss for the first time since 2022. This development mirrors behavior last observed during the market turmoil of the Terra-LUNA collapse.
The key metric highlighting this shift is the Long-Term Holder Spending Output Profit Ratio (LTH SOPR). Glassnode's analysis reveals that the 7-day moving average of this metric has fallen below 1, indicating that LTHs are now realizing losses on their sales rather than taking profits. This marks the first sustained dip below this critical threshold in nearly two years.
"This could signal the bottom of a bear market," Glassnode noted, adding that long-term investors starting to sell is a common occurrence during market lows. However, the firm also pointed out a concerning parallel: the current weakness in dip-buying from LTHs is now comparable to levels seen during the 2022 Terra-LUNA and FTX crises.
Historically, long-term holders have acted as Bitcoin's market backbone, aggressively accumulating during price dips to stabilize the market. Their current reluctance to buy suggests a deeper structural shift in sentiment. With these veteran investors stepping back, short-term traders are dominating price action, potentially increasing volatility and weakening key support levels.
Glassnode has identified the $65,000 level as a crucial support zone for Bitcoin. The firm warns that a break below this level could see the price target the next significant support area around $54,000.
