Bitcoin's 2025 rally has revealed a divergence between rising prices and short-term holder sentiment, suggesting potential buying opportunities. On-chain data shows that despite Bitcoin's upward trajectory, short-term holders are selling at losses, with the Short-Term Holder Spent Output Profit Ratio (SOPR) remaining below one for 70 days. This indicates fear-driven behavior, historically preceding significant accumulation phases.
The SOPR metric, which measures whether short-term holders realize profits or losses, highlights a persistent fear among these investors. Despite Bitcoin's price appreciation, this fear-driven selling suggests a "wall of worry" that markets can climb, potentially leading to accelerated price gains once sentiment aligns with fundamentals. Historical patterns show similar conditions have preceded substantial rallies, as seen in 2019 and 2023, where negative SOPR readings during rallies led to significant price increases.
Bitcoin Short-Term Holder Fear Signals Buying Opportunities Amid 2025 Rally
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