Bitcoin holders are still only just breaking even

On-chain data suggests bitcoin holders aren’t currently able to book a profit amidst hype around spot ETF filings

article-image

Mia Stendal/Shutterstock modified by Blockworks

share

The price of bitcoin (BTC) has almost doubled this year, but on-chain metrics hint that holders overall aren’t currently in profit.

Bitcoin’s Spent Output Profit Ratio (SOPR) attempts to gauge whether bitcoins are worth more now than when they were last moved. 

The idea is that BTC was bought when their latest UTXO was created. So, comparing current bitcoin prices to that point in time will show if the holder is in profit.

(“Holders,” in this case, refers only to addresses with BTC balances. SOPR doesn’t include bitcoin positions held on centralized exchanges, as it only studies on-chain movements.)

An SOPR reading of more than one signifies on-chain bitcoin holders are in profit, one means breakeven, while less than one indicates they’re in the red. That figure sat at a 1.00275782 on Wednesday, per CryptoQuant.

Bitcoin’s SOPR was higher on July 1, reaching 1.01. Bitcoin had jumped nearly 15% over about a week on the back of buzz surrounding BlackRock’s spot ETF filing, first submitted in mid-June

Bitcoin is up almost 3% over the past day, having reclaimed $31,000. On May 7, Bitcoin’s SOPR hit its highest point since December 2020 — almost 1.073 — when BTC traded for about $28,500.

Bitcoin’s SOPR is, understandably, as volatile as its price

Bitcoin holders eye institutional interest

Federal Reserve officials indicated this week that although the pace of rate hikes should slow, there may still be increases in the near future. Crypto prices initially sank in response.

Regulatory scrutiny has diminished the appeal of crypto for some participants from traditional finance, according to Youwei Yang, chief economist at publicly-listed firm Bit Mining.

“The narrative of a US Bitcoin Spot ETF has sparked hope for broader institutional adoption, although the extent of institutional buying remains uncertain,” Yang told Blockworks.

Still, Yang reasoned that crypto-native investors don’t particularly care about macroeconomic developments including CPI, Fed interest rates, jobless claims and geopolitical concerns that major stock indices are usually traded upon.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Cover Vertex.jpg

Research

The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.

article-image

Plus, a dive into crypto’s ever-expanding unicorn club

article-image

Also, tokenization continues to grab headlines and one bitcoin miner stock soars Tuesday after inking a big deal

article-image

Fifteen million daily failed transactions disappeared from Solana

article-image

FTX debtors will pay the IRS $200M, with an outstanding lower priority claim of $685M

article-image

I’ve come to the realization that more attention is needed to create and sculpt the digital spaces where we live

article-image

The NYSE went down yesterday after a glitch caused a string of erroneous trades. Does DeFi fix this?