The bearish hold over the crypto markets is intensifying as the Bitcoin price continues to crash below $58,000. The growing uncertainties over the token have not only made the retail traders vigilant but also the bigger players like institutions, whales, and dormant addresses. A similar trend has been witnessed in the past 24 hours, which is speculated to be one of the major reasons for the BTC price downfall.
Ever since the BTC price dropped below the crucial support level of $62,500, the holders appear to have become furious about the future perspective of the token. As a result, whales and institutions have jumped in to extract some profits. Whale Alert, the platform that records interesting transfers within the crypto space, displayed a large transfer of nearly 119 BTC.
These transfers coincided in the times when the SOPR or the Spent Output Profit Ratio for long-term Bitcoin holders surged above 10. Whenever the levels mark a double-digit figure, it indicates that these tokens were moved on the blockchain with substantial profits.
The high SOPR also correlates with a price correction, which implies that the long-term investors realised profits are now 10 times their initial investment. Other data reveals that the holders who have held BTC for over 5 years have also started to move their tokens, aiming to extract more profits.
The Spent Output Age Bands chart reveals the age categories of the moved coins. The highest activity was observed among the holders who have held Bitcoin for 5 to 7 years. Therefore, it appears that the long-term investors have realised significant profits, contributing to the decline in Bitcoin’s price. Hence, it has become pivotal to constantly monitor their behaviour, as continued selling could lead to further price corrections.
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