Bitcoin network sales are unprofitable

by in Cryptocurrency News

Bitcoin

The dominance of a negative trend in the market is evidenced by a decrease in the SOPR indicator. Most addresses are selling cryptocurrency at a loss in the current cycle, as evidenced by the latest data from the CryptoQuant team.

The SOPR index displays the financial performance of the addresses involved in transactions. If this indicator rises above one point, then investors are selling in the market at a profit.

If SOPR falls below one, then sales are mostly unprofitable. The rollback of bitcoin provoked a fall in this index, respectively, traders selling cryptocurrency incur financial losses.

If the SOPR is equal to one, then BTC sales are breakeven.

Trending: Intel Plans to Present an Efficient BTC Mining ASIC

According to experts, negative sales show which investors are now actively getting rid of cryptocurrency. These are the categories of traders who purchased coins at prices higher than today, that is, more than $ 42,700.

Such investors fear that BTC will continue to retreat, so they are panicky dumping cryptocurrency to minimize losses.

For the market, the growth of the SOPR indicator means that speculators who participate in pumping BTC and want to make a profit at the peak are leaving it. As a result, those investors remain on the market who are interested in the long-term storage of cryptocurrency.