The SOPR indicator exceeded one, and it suggests that investors are selling at a profit.
The day before, this indicator was below 1, that is, traders were selling bitcoins at a loss for themselves.
The growth of the index today was the result of an improvement in the situation in the crypto market. BTC is trading above $ 49,000, and today the coin could reach the psychological mark of $ 50,000.
The partial recovery of cryptocurrency positions has led to an increase in the number of profitable bitcoin addresses.
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According to Glassnode, 76% of wallets are in positive territory. Two factors can be distinguished here that contribute to maintaining such a high proportion of profitable wallets.
According to the researchers, long-term investors who acquired cryptocurrency in the first half of 2021 are not yet selling it, so they are still in the black. Short-term traders, on the other hand, managed to dump their coins at the peak and were able to avoid losses.
Analysts also draw attention to the weakening of network activity.
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Most likely, investors decided to switch to wait-and-see tactics after the massive December sale. Although a scenario is not ruled out in which volatility will worsen on the eve of the holidays. This phase is commonly referred to as the "Santa Claus Rally".