Bitcoin News Today: Selling Pressure Mounts as STHs Cut Losses Ahead of Fed Move

Bitcoin short-term holders (STHs) are selling at a loss, with the SOPR (Spent Output Profit Ratio) dropping below 1. This indicates that STHs are liquidating their positions for less than the original purchase price. The metric is a key indicator of market sentiment among traders holding assets for under a year, and values below 1 suggest that selling pressure is increasing as holders seek to mitigate further losses. The decline has emerged against a backdrop of broader market volatility and anticipation of the U.S. Federal Reserve’s upcoming FOMC minutes [1].

The SOPR metric is calculated by dividing the total profit or loss from each transaction by the value of the transaction. When the ratio is above 1, it implies that holders are selling at a profit; below 1, it indicates losses. This drop in the SOPR suggests that STHs are likely reacting to near-term market uncertainty, potentially due to macroeconomic factors or regulatory developments. Analysts have noted that SOPR values have historically been a predictive tool for short-term price movements, with sustained values below 1 often preceding bearish corrections in the cryptocurrency market [1].

The recent liquidation activity by STHs is occurring alongside broader market turbulence. Reports indicate that over $900 million in crypto assets were liquidated in a single session, intensifying downward pressure on prices. Traders and investors are closely monitoring whether this selling is a temporary correction or the start of a more prolonged bearish trend. Analysts remain cautious, noting that increased short-term selling could continue to depress price action in the near term [1].

Market observers are also watching for signs of institutional participation in the liquidation. Some on-chain analysts have noted that large outflows from exchange wallets may indicate that larger participants are exiting their positions or rebalancing their portfolios. This trend, if confirmed, could further amplify selling pressure and delay the market's recovery. Additionally, the timing of the SOPR drop—just before the release of the Federal Reserve’s latest policy minutes—suggests that traders are positioning for potential rate hike implications [1].

While the broader market environment remains uncertain, some analysts argue that the drop in SOPR is not yet a cause for alarm. Historically, similar dips have occurred during periods of consolidation, with prices stabilizing once the immediate catalysts are addressed. However, the continued selling by STHs may still serve as a warning sign for retail investors. With no immediate signs of a major buying catalyst, the market may remain in a bearish phase until there is a reversal in the SOPR trend and broader on-chain metrics [1].

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[1] Bitcoin STH Selling At Loss Ahead of FOMC Minutes, BTC Price to $100k? (https://www.thecoinrepublic.com/2025/08/24/bitcoin-sth-selling-at-loss-ahead-of-fomc-minutes-btc-price-to-100k-2/)