Analytics firm Glassnode indicates that the Bitcoin
Reports suggest that long-term holders have recently secured profits at levels mirroring those seen at previous cycle peaks. Simultaneously, the momentum of inflows into Bitcoin-based exchange-traded funds (ETFs) has diminished following the Federal Reserve’s decision to hold interest rates steady.
Bitcoin encountered a drop below a crucial support level near $112,000, subsequently hitting a four-week nadir of $108,700 on September 25th. 10x Research’s Markus Thielen pointed out the swift dissipation of a prior recovery attempt from this level.
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He further suggested that, while some anticipate a year-end surge, the potential for a deeper price correction may represent a more significant risk.
According to insights from Glassnode, Bitcoin’s profitability has exceeded 90% of on-chain activity on three occasions during this market cycle, with the most recent occurrence happening just recently.
The Spent Output Profit Ratio (SOPR) implies that a portion of traders are liquidating their holdings at a loss, a behavior typically associated with strained market conditions. Concurrently, the Short-Term Holder Net Unrealized Profit/Loss metric is nearing the zero mark, a level often triggering exits from newer investors and potentially leading to forced selling scenarios.
Glassnode concludes that the possibility of further declines persists, unless institutional buyers and dedicated long-term investors re-enter the market. Thielen adds that his firm is currently adopting a neutral outlook until Bitcoin manages to surpass the $115,000 threshold once more.
On September 23rd, Michael Saylor, the executive chairman of MicroStrategy, shared his perspective on how Bitcoin could commence an upward trend before the close of 2025. Interested to know what he said? Read the complete story.