The Short-Term Holder Spent Output Profit Ratio (STH-SOPR) for Bitcoin (BTC) has recently witnessed a drop, slipping from 1 to 0.9809. This decline in the STH-SOPR metric implies less favorable conditions for short-term Bitcoin holders, particularly in light of the recent price corrections.
The STH-SOPR serves as a crucial gauge for assessing the profitability of Bitcoin trades involving coins held for less than 155 days. A decreasing STH-SOPR during a period of price correction is significant because it suggests that many short-term holders may be contemplating selling their Bitcoin holdings. Such actions can contribute to an overall decrease in Bitcoin prices, potentially setting off a self-reinforcing cycle of declining values.
Lack of Enthusiasm Amid ETF Delays
One contributing factor to the subdued sentiment among Bitcoin investors is the perceived lack of progress in the realm of spot Bitcoin exchange-traded funds (ETFs). The U.S. Securities and Exchange Commission (SEC) recently opted to extend the review period for seven ETF applications, deferring their decisions for an additional 45 days. This places the new deadline for these ETF applications in mid-October.
These delays come despite a recent court ruling involving digital asset manager Grayscale. This ruling is widely seen as a development that will make it challenging for the SEC to reject any of the ETF applications. The court’s decision essentially means that the SEC is legally unable to prevent Grayscale from transitioning its Bitcoin Trust into a spot ETF, a move the firm has long sought.
As of the latest available data, Bitcoin’s price stood at $25,727, reflecting a 0.8% decline over the past 24 hours and a nearly 1% decrease over the preceding seven days. These price fluctuations underscore the cautious sentiment and uncertainties prevailing in the Bitcoin market amidst the evolving dynamics of short-term holders and regulatory developments.
