Analysis: Bitcoin profitability indicators have dropped to a two-year low, which may indicate that a local bottom is forming.

According to news from CoinWorld on December 7, on-chain analysis platform CryptoQuant stated that the Bitcoin SOPR ratio (LTH-SOPR / STH-SOPR) has dropped to 1.35, reaching its lowest level since the beginning of 2024. This decline coincides with Bitcoin’s price correction to the $89,700 level. A higher ratio usually indicates that long-term holders (LTH) are actively taking profits compared to short-term holders (STH). The sharp drop of the ratio to 1.35 suggests that the large-scale distribution phase of old coins has significantly subsided. The actual profit gap between veterans and newcomers is narrowing. This decline signals that the market is undergoing a large-scale “reset.” The speculative bubble that previously drove the ratio up has been cleared.

Historically, when the SOPR ratio falls to these lower limits during an overall bull cycle, it usually indicates that selling is about to be exhausted. If the ratio stabilizes or rebounds upward from the 1.35 level, it may indicate that a local bottom is forming, laying a more solid foundation for the next round of gains.