MAC_D2023-05-09

Short-term SOPR metric identify when to buy BTC

The short-term SOPR metric is a SOPR metric calculated only for coins held over an hour to less than 155 days. It is an metric of whether investors who have traded after holding coins at the time of trading in the past have made profits for coins held for a short period of time, and more than 1 can be interpreted as a high percentage of coins that have lost money. The latest SOPR index peaked on March 18 (1.07) and was consistently high, and it can be estimated that short-term investors under six months were making quite a profit on average. But today's short-term SOPR index fell to 0.99, below 1. This can be understood as the price of Bitcoin has fallen as short-term investors realize profits, meaning their average profit or loss has turned into losses. If Bitcoin is on an upward trend, it represents a good time to collect coins when the short-term SOPR metric is below 1. Therefore, from this point on, whenever the short-term SOPR metric shows zero, it should be used as an opportunity to lower the average purchase unit price by purchasing in installments.