Glassnode crypto researchers: Bitcoin investors are holding on to their coins with iron fists
- Glassnode has published a chart of the Bitcoin 60-day Spent Output Profit Ratio (SOPR).
- The SOPR chart shows that BTC buyers in 2021 did not sell during the February dip.
- The “HODL” conviction remains high for Bitcoin.
Cryptocurrency analytics firm Glassnode has published a chart showing that HODLing conviction has remained high during the recent dip.
Glassnode published a chart showing the bitcoin 60-day Spent Output Profit Ratio (SOPR). According to the chart, the SOPR has not fallen below 1 despite the bitcoin slump in February. This shows that those who bought Bitcoin in 2021 have held on to it despite the correction.
SOPR and its meaning
Glassnode calculates SOPR by dividing the price sold by the price paid. The company has a detailed article on what you can read from the SOPR chart.
In short, when the SOPR is above 1 (profits are made), Bitcoin Storm selling at a loss is rejected. In a bear market, the sell-off continues until the value falls below 1 as more losses are recorded than gains.
In February, the SOPR did not fall below 1. So Glassnode can assume that enough of the recent bitcoin buyers have maintained their holdings to keep the SOPR from going negative.
It’s being hodlled
Sentiment is also showing up in other ways, as business intelligence firm MicroStrategy demonstrated on 5 March with its purchase of 205 BTC. The $10 million purchase brings the company’s bitcoin holdings to 91,0634.
MicroStrategy CEO Michael Saylor tweeted about the purchase while giving some interesting statistics about the company’s stake. For one, the average purchase price is now $24,119. For comparison, MicroStrategy’s first bitcoin purchases took place in August 2020, when bitcoin sold in the $11,000 range.
MicroStrategy is known to buy any price drop in Bitcoin. The latest purchase follows this pattern. In fact, this is the company’s fourth bitcoin purchase in 2021.
MicroStrategy’s purchase also signals that Bitcoin (Go to buy bitcoin cheap platform comparison) is in a dip. The cryptocurrency has a key resistance area at $52,500.
This area was tested in March but has not yet been broken. The market is looking for signals to send the coin to the next level.
Interest in BTC futures is also waning. In November and December 2020, the decline in perpetual futures indicated a new round of speculative interest.
This in turn drove the price up. Corporate interest is high and recent buyers are holding back.
For now, the big question is what will move the bitcoin price above $52,500.