Bitcoin's Short-Term Holders Shift: Profit-Taking Emerges

Bitcoin's price has been trading below the $100,000 mark, currently at $98,000, with a daily performance in positive territory. However, the broader picture indicates persistent bearish pressure, as the cryptocurrency has declined by 6% over the past month and is down 10% from its all-time high above $109,000 recorded last month. Market participants are closely examining on-chain metrics to gauge the potential direction of the market.

One key indicator, the Short-Term Holder Spent Output Profit Ratio (STH SOPR), has been under scrutiny by a CryptoQuant analyst. The STH SOPR measures whether short-term holders—those who have held their coins for less than 155 days—are selling at a profit or a loss. According to the analyst, the STH SOPR appears to be fading, suggesting a shift in the selling behavior of short-term holders.

A value above 1.00 indicates profit-taking, while a value below 1.00 suggests losses. In 2025 so far, the metric has shown that short-term holders have sold at a loss during three notable corrections. On January 8, Bitcoin's price dropped from $104K to $92K, driving STH SOPR down to 0.987. Similarly, on January 27, a correction from $106K to $102K pushed the ratio to 0.990, and on February 2, a plunge from $104K to $91K brought it to 0.984.

However, Bitcoin appears to be consolidating between $94K and $97K, with STH SOPR at 0.998. This near-neutral level suggests that short-term holders are no longer selling at significant losses, indicating that the fear-driven selling seen earlier in the year may be subsiding. This shift is noteworthy because sentiment among short-term holders often plays a critical role in the market's overall trajectory. When short-term holders start turning a profit, they are more likely to share positive experiences, potentially encouraging new investors to enter the market. This dynamic can help accelerate upward momentum, laying the groundwork for the next bullish phase. The recent stabilization of STH SOPR, along with Bitcoin