A closely followed on-chain analyst says that one key indicator is illustrating the strength of Bitcoin’s (BTC) bull market.
Pseudonymous on-chain analyst Checkmate tells his 95,600 followers on the social media platform X that the short-term holder spent output profit ratio (STH-SOPR) is signaling a sustained Bitcoin uptrend.
The STH-SOPR tracks the profit or loss levels of all moved BTC during the last 155 days for the short-term holder cohort.
According to Checkmate, the STH-SOPR dipped below the “1” level briefly before rebounding, indicating strong market fundamentals.
“Bitcoin short, sharp STH-SOPR undercut of 1.0, followed by a break of the STH cost basis. Love to see it, this is what BTC bull markets are made of.”
The analyst believes that Bitcoin’s price is a reflection of the global macroeconomic conditions.
“Bitcoin is quite clearly an index on global events. Its price, and investor response to it, are immutably baked into the Bitcoin ledger every block. The on-chain database contained within Bitcoin is one of the most potent sources of market information that exists.”
Bitcoin is trading for 67,431 at time of writing, down slightly in the last 24 hours.
Looking at altcoins, the analyst warns that many alt projects may be fading away due to lack of utility.
“A lot of altcoin folks are going to confuse ‘my coin isn’t pumping’ with ‘the risk-reward is improving.’ We’re at a point in this game where altcoin products delivered are truly shit, and have negligible demand. The uptrend on your coin is far from guaranteed folks.”
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