Grizzly2025-01-26

Major Market Players Reluctant to Sell

In previous Bitcoin bullruns, the SOPR Ratio (LTH SOPR/STH SOPR) saw a significant increase alongside the parabolic rise in prices. However, why has this metric seen much slower growth in the current bullrun, even when the cryptocurrency is trading above $100,000, yet remains lower than it was in June 2024? To answer this question, we must revisit the definition of this metirc. According to CryptoQuant, Higher value of the ratio means higher spent profit of LTH over STH As more cycles occur in the market, Bitcoin matures, and investors tend to distance themselves from speculative activities. It could be said that they develop a deeper understanding of Bitcoin's value. On the other hand, the entry of institutional players has shifted the dynamics. In fact, the flow of capital to exchanges has decreased, as Bitcoin investors are now adding it to their portfolios as a valuable asset and are unlikely to sell anytime soon. Given these conditions, the scenario strengthens that we will face new cycles of Bitcoin. In these new cycles, speculative activities will decrease, and Bitcoin will be held as a valuable asset for much longer.