Why Did Bitcoin Plunge Under $58,000? On-Chain Data Says This
Summary
Bitcoin's price dropped below $58,000 due to long-term holders selling large amounts of BTC at a profit, indicated by the Spent Output Profit Ratio (SOPR) exceeding 1. The selling was particularly notable among holders who had kept their coins for 5 to 7 years. This profit-taking by long-term holders likely contributed to the recent market crash. Despite briefly falling below $57,000, Bitcoin has since recovered to around $57,700.
