Bitcoin's Short-Term Holder Spent Output Profit Ratio Indicates Early Recovery, Suggesting Market Rebound

Bitcoin's Short-Term Holder Spent Output Profit Ratio (STH-SOPR) has shown early signs of recovery, indicating easing selling pressure and weak-hand selling being absorbed by stronger buyers. This trend often marks the early stages of market rebounds and has historically paved the way for significant price rallies. If buyers continue to absorb weak-hand selling, it could mirror past resets that led to the next leg higher. The early recovery in STH-SOPR highlights a healthier market structure and points to a maturing cycle where short-term corrections contribute to longer-term resilience.

Bitcoin miners' market capitalization surged to $58.1 billion in September, up from $41.6 billion in August, according to data from JPMorgan and The Miner Magazine Bitcoin miners’ market capitalization hits new record^[1]. This significant rebound was driven by equities gains that far outpaced Bitcoin’s 21% six-month rise. The surge was boosted by growth in high-performance computing (HPC) and investments in powerful ASICs by major mining operations such as Marathon Digital and Riot Platforms Bitcoin miners’ market capitalization hits new record^[1].

Several publicly traded miners led the surge. Australia’s IREN led with a 624% increase, while Cipher Mining (CIFR) and Applied Digital (APLD) climbed 321% and 345% respectively. TeraWulf (WULF), Hut 8 (HUT), and Bitfarms (BITF) rose between 179% and 280%, and larger players like Marathon Digital (MARA), CleanSpark (CLSK), and Bitdeer (BTDR) delivered substantial double-digit gains Bitcoin miners’ market capitalization hits new record^[1].

The rise in Bitcoin’s network hashrate, which reached a new high of 1.2 zetahashes per second, also contributed to the market cap surge. This increase in computational power is a sign of resilience over the 2022 downturn Bitcoin miners’ market capitalization hits new record^[1]. The increased hashrate reflects a maturing market structure where only companies with modern hardware and affordable electricity can survive.

The Bitcoin mining industry's strong September performance was further bolstered by the recent investment in HPC and green energy by companies like Cango Inc. Bitcoin miners’ market capitalization hits new record^[1]. Additionally, Google's backing of a deal between AI compute firm Fluidstack and Cipher, securing a 5.4% stake, indicates growing interest in the sector Bitcoin miners’ market capitalization hits new record^[1].

The short-term holder Spent Output Profit Ratio (STH-SOPR) has shown early signs of recovery, indicating easing selling pressure and weak-hand selling being absorbed by stronger buyers. This trend often marks the early stages of market rebounds and has historically paved the way for significant price rallies . If buyers continue to absorb weak-hand selling, it could mirror past resets that led to the next leg higher.

Bitcoin's price has also rebounded, jumping above $116,000 on October 1 and reaching $118,582.99 on Thursday. The token’s total market value is now $2.63 trillion, representing a 3.45% increase today and a 7.4% rise over the past month Bitcoin miners’ market capitalization hits new record^[1]. The recovery also led to a broader resurgence in altcoins, resulting in $354 million in liquidations and pushing the overall crypto market value to nearly $4 trillion Bitcoin miners’ market capitalization hits new record^[1].

The surge in Bitcoin miners' market capitalization and the network hashrate increase suggest a healthier market structure and point to a maturing cycle where short-term corrections contribute to longer-term resilience. Investors should closely monitor these developments for further insights into the crypto market's trajectory.