Key on-chain metrics indicate that long-term BTC holders were not fazed by the recent correction. The aSOPR metric gauges the quantity of all coins spent that day and calculates the degree of profit or loss compared to when they were last moved.
According to Glassnode, the Adjusted Spent Outputs Profit Ratio (aSOPR) declined beneath 1.0 for the first time in this bull market, reaching a value of 0.988. When the aSOPR is less than 1.0, it means quantitatively, coins moved that day were at a loss. Low aSOPR values, especially when reset below 1.0, also mean fewer old and profitable coins were spent. This suggests confidence and HODLing strength remain for long-term holders.
The drastic plunge in aSOPR may point to ‘panic selling’ by new entrants, given the data-driven evidence that the Bitcoin market has seen an influx of new retail investors.
Another on-chain metric, the Net Unrealized Profit and Loss (NUPL) metric saw sideways ranging and choppy behavior during Bitcoin’s two corrections. Despite this, NUPL is yet to decline to its typical bull market support value of 0.5 so far. This may indicate that buyers are stepping in sooner and fewer HODLers are letting go of their coins this cycle.
Since March 12th, 2020, the sustained trend and volume of coins being withdrawn into illiquid status continues. The trend of coins being withdrawn and locked away into long-term holding patterns provides strong evidence that Bitcoin is now viewed as an important macro asset.
Image Credit: Glassnode, Shutterstock
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