Bitcoin SOPR ratio drops to 1.35, hitting a new low for the year. What does this signal indicate?

Question

[On-chain Insights] Recently, a pretty crucial signal has emerged in on-chain data—the Bitcoin SOPR ratio (( long-term holder profit multiple / short-term holder profit multiple )) has dropped to 1.35, the lowest point since the beginning of this year, which coincided with BTC pulling back to $89,700.

The higher this ratio, the more the old holders are earning and selling compared to the new holders. What does this sharp drop to 1.35 mean? Basically, most of the old coins held for a long time have already been distributed, and the actual profit gap between early players and newcomers is narrowing. The market has just undergone a thorough “washout”—the speculative bubble that previously pushed the ratio higher has now been squeezed out.

Looking back at historical data, every time the SOPR ratio falls to this low range during a bull market, it often signals that selling pressure is nearing a bottom. If this 1.35 level can hold or even start to rise, it likely indicates a local bottom is forming, and the foundation for the next market upswing will be even stronger.

FlatlineTrader · Accepted Answer

Is it true that all the old holders have really sold everything at the 1.35 level? Feels like we still need to see if it can hold in the coming days.

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Wait, so the logic is that low levels are usually the bottom? But this kind of pattern has backfired in history too, hasn’t it?

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All the old retail investors have left, and the new ones are still here. This is the real moment when bagholders are born.

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Every time SOPR says we've hit bottom, but what actually happens? Still depends on the market’s mood.

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Bottoming out in selling pressure ≠ bottoming out in price. Don’t let these indicators fool you.

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Interesting, have those big holders who stuck it out really given up so quickly?

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Whether 1.35 can hold is the real key; otherwise, it’s just a prelude to a false breakout.

RektButStillHere · Answer

1.35 is definitely an interesting level, the old coins are almost all cleared out.

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Selling pressure bottomed out? Just listen, don't take it too seriously.

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Every time they say this is the bottom, but then it tumbles...

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Wait, isn't this the same "local bottom" argument again? Didn't we hear enough of that last year?

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I believe the talk about the old coins being almost distributed, since retail investors still have to hold the bag anyway.

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Hold 1.35 and it'll take off? I'm skeptical, bro.

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Washing out, washing out, and in the end it's us little retail guys who get washed out last.

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The historical data looks good, just not sure if it'll repeat this time.

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If the profit gap gets smoothed out, then who makes the money? Still the big players.

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The signal couldn't be clearer, the question is, what comes after the signal...

MEVvictim · Answer

All the old coins have been dumped, so now there’s not much difference for the new retail investors. This is getting interesting.

MetaverseLandlord · Answer

The old tokens have mostly been distributed. Now it depends on whether we can hold the 1.35 line—if we do, there’s hope.