A January 25 report published by cryptocurrency collector Glassnode suggested that the share of the cost of adjusted earnings from Bitcoin, or aSOPR, indicates that further price declines will leave many investors in the red, depending on the last time they were made. They transfer their assets over the Internet. …

While the index indicates that few investors are sitting on paper income, Glassnode interprets the data as bullish and says:

“For SOPR to fall, investors must be prepared to sell at a loss, which is hardly given the current shape of the market […] We looked for this reset to provide some stability in the market and pave the way for the next bullish traits. ”
Glassnode describes the index as a payout ratio for a coin based on the price of bitcoins when they were last moved down the chain. Since aSOPR is a network target, BTC trading is not counted in centralized exchanges.

While the SOPR should normally be around 1, intense bullish momentum in recent months has pushed Bitcoin towards the exchange rate above 1.15 at the end of December and the first half of January.

However, in a beef market, aSOPR values ​​skew below 1 as traders are not willing to sell at a loss.

Glassnoud indicated that a SOPR chart indicates that the current correction is nearing its end. Bitcoin has corrected 31% from the recent peak to its lowest level when it fell just below $ 29,000 on January 22nd. At the time of writing, Bitcoin is trading for $ 31,750.

On January 25, Glassnode also reported that 2.3 million BTC, or 12.6% of Bitcoin’s current supply, had been transferred to the chain, while BTC traded above $ 30,000, indicating that this activity is bullish:

“This is very important, given that BTC alone has exceeded $ 30,000 this year. This indicates that investors are investing and are therefore confident of the price increase.”

Source: CoinTelegraph

LEAVE A REPLY