The Bitcoin market resets as long-term holders exit and short-term investors take the lead.

Bitcoin falls below $90,000, drawing attention from market analysts. According to data from blockchain analytics platform CryptoQuant, the SOPR (Spent Output Profit Ratio) indicator for long-term holders (LTH) of Bitcoin has dropped to its lowest level since the beginning of 2024, indicating that the large-scale sell-off by long-term holders has ended, and profits are now mainly being taken by short-term holders. This phenomenon is interpreted as a signal that the market is entering a cooling period.

In its analysis, CryptoQuant pointed out that as Bitcoin’s price dropped to its lowest level since April, long-term holders have stopped selling. There has been a significant shift in the profitability of unspent transaction outputs (UTXO) created by long-term holders and short-term holders (STH). LTH refers to wallets holding for more than 155 days, while STH refers to wallets holding for less than 155 days.

By analyzing changes in the SOPR indicator to observe the profit and loss ratio of UTXOs, the results show that most of the currently profitable transactions are generated by short-term holders. Data shows that the ratio of LTH-SOPR to STH-SOPR has dropped to 1.35, the lowest level since the beginning of the year, coinciding with Bitcoin’s price correction to $89,700.

Notably, the net position change of short-term holders surged significantly on November 24 and then declined again on December 1, showing a sensitive response to price fluctuations. Market analysts believe the market is in the process of seeking a new equilibrium point.