Bitcoin’s price remains below the $100,000 mark, trading at $98,000 at the time of writing. While this positions its daily performance in positive territory, the larger picture suggests continued bearish pressure.
Over the past month, Bitcoin has declined by 6%, and its current price represents a 10% decrease from the all-time high above $109,000 recorded last month. This prolonged downturn has led market participants to closely examine on-chain metrics for clues about what might come next.
Short-Term Bitcoin Sellers Are Fading
One key indicator, the Short-Term Holder Spent Output Profit Ratio (STH SOPR), has gained attention recently from a CryptoQuant Analyst.
The analyst known as Burak Kesmeci in a recent upload on the QuickTae platform revealed that STH SOPR which measures whether short-term holders—those who have held their coins for less than 155 days—are selling at a profit or a loss appears to now be fading.
A value above 1.00 indicates profit-taking, while a value below 1.00 suggests losses. In 2025 so far, this metric has shown that short-term holders have sold at a loss during three notable corrections.
According to the analyst, on January 8, Bitcoin’s price dropped from $104K to $92K, driving STH SOPR down to 0.987. Similarly, on January 27, a correction from $106K to $102K pushed the ratio to 0.990, and on February 2, a plunge from $104K to $91K brought it to 0.984.
Short-Term Holders and Future Market Sentiment
Kesmeci revealed that Bitcoin appears to be consolidating between $94K and $97K, with STH SOPR at 0.998. This near-neutral level suggests that short-term holders are no longer selling at significant losses, indicating that the fear-driven selling seen earlier in the year may be subsiding.
This shift is quite noteworthy because sentiment among short-term holders often plays a critical role in the market’s overall trajectory. When short-term holders start turning a profit, they are more likely to share positive experiences, potentially encouraging new investors to enter the market.
This dynamic can help accelerate upward momentum, laying the groundwork for the next bullish phase. The recent stabilization of STH SOPR, along with Bitcoin’s steady price range, may set the stage for a stronger rally in the months ahead.
However, while it is still early to determine the direction of the next major market move, the near-neutral STH SOPR suggests that selling pressure from short-term holders has overall diminished.
This could pave the way for a more stable price environment, and if positive sentiment continues to grow, Bitcoin may see renewed interest and an eventual return to higher price levels.
Featured image created with DALL-E, Chart from TradingView
