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Rising LTH inflows on Binance reflect growing selling pressure
The situation in Bitcoin continues to deteriorate, with the asset still trading more than 45% below its previous all time high. This prolonged correction is putting pressure on a broad share of investors, and even long term holders are beginning to feel the effects of this unfavorable market dynamic. The LTH SOPR, which measures the profits and losses realized when their UTXOs are spent, has recently moved into negative territory. While the annual average LTH SOPR remains elevated at 1.87, the indicator has fallen below the key threshold of 1 to 0.88, a configuration not seen since the end of the 2023 bear market. On average, this implies that LTHs are now realizing losses on their sales, reflecting a gradual build up of financial stress within a group of investors that has historically been highly resilient. At the same time, despite the growing share of realized losses, LTHs have increased their inflows to Binance in recent weeks. The chart highlights periods when daily inflows reach levels roughly twice the annual average, signaling exceptionally elevated flows and a clear shift in behavior. These spikes in activity suggest that a portion of LTHs is actively repositioning in response to current market conditions. This pattern has been visible since the last all time high and has accelerated in recent weeks. Several consecutive days have recorded inflows well above typical levels, pointing to sustained growth in LTH activity on the platform. Given their capacity to move significant volumes of BTC, it is unsurprising that these participants often favor Binance for its market depth and liquidity. In this context, rising LTH inflows can be interpreted as a sign of intensifying selling pressure, even as the broader correction continues to unfold. This behavior suggests an adjustment phase in which even long term investors are actively managing their exposure, a factor that could continue to weigh on market dynamics in the short to medium term.