Bitcoin SOPR ratio hits new yearly low, selling pressure from long-term holders may be nearing an end

[BlockBeats] Recently, I’ve noticed a pretty interesting on-chain signal—the Bitcoin SOPR profit and loss ratio for long-term holders/short-term holders has dropped to 1.35, which is the lowest point so far this year. At the same time, the price has also pulled back to around $89,700.

There are actually a few layers of meaning behind this data. First, the selling pressure from veteran holders has basically ended. When this ratio was high before, it indicated that people who had been holding for a long time were cashing out aggressively, while new retail investors were still struggling near the break-even point. Now that it’s down to 1.35, it means that the large-scale sell-off by old players has mostly wrapped up, and the profit gap between seasoned holders and new capital is narrowing.

Secondly, market sentiment has indeed cooled down. This indicator is essentially a thermometer for market heat, and such a drop means that the previous speculative bubble has been mostly squeezed out, marking a fairly thorough “sentiment reset.”

Looking at historical data, you’ll find that during major bull cycles, when the SOPR ratio drops to this kind of low range, it often signals that selling pressure is nearing a bottom. If this indicator can stabilize around 1.35 in the next phase, or even start to rise, it could be a sign that a local bottom is forming, building a more solid foundation for upward momentum in the upcoming market.