Bitcoin’s Long-Term Holders Show Signs of Strain After February Sell-Off
Bitcoin long-term holders are under significant pressure following a sharp sell-off, with conviction weakening to levels last seen during the May 2022 LUNA crash. The 7-day exponential moving average of the Long-Term Holder Spent Output Profit Ratio (SOPR) fell below 1, indicating these investors are now realizing losses. As long-term holders typically underpin market bottoms, their current losses raise questions about where the next support will emerge; Glassnode identifies $54,000 as a critical level. Macroeconomic data has not provided a clear direction: the U.S. added 130,000 jobs in January and inflation slowed to 2.4%, but neither statistic boosted Bitcoin, and a March rate hold seems likely. Despite negative sentiment and declining prices, some, like FalconX's Sean McNulty, believe $60,000 will act as a near-term floor, citing strong buying activity and lack of a systemic crypto blow-up. The recent sell-off is seen as “orderly deleveraging” rather than evidence of structural failure.
