The Spent Output Profit Ratio (SOPR) for long-term holders (LTH) is one metric gaining attention. It has reached a new high for 2025, according to CryptoQuant analyst Gaah. This indicator measures the profitability of coins moved by owners who have held their Bitcoin for over 155 days. Current readings suggest that LTHs are starting to sell at a profit, but the SOPR is yet to reach the critical levels traditionally associated with market peaks.

Gaah pointed out that while the LTH SOPR has crossed the midpoint and is slightly above 2.5, it’s still far below the 4.0 level, which has historically signaled macro peaks in past cycles. This indicates that long-term investors are making profits, but not in a manner that suggests a market frenzy or widespread divestment. Higher SOPR readings above 4.0 in previous bull cycles marked the beginning of substantial corrections or cycle peaks.

The steady rise in profit-taking suggests a maturing market that still has upward potential. Gaah advises investors to view this as part of the natural progression of a bullish phase, although correction risks persist. The ongoing patterns of accumulation and realization by LTHs offer a glimpse into how confidence and caution can coexist in the market.

In related news, CryptoQuant analyst Arab Chain pointed out the continual activity in the Bitcoin derivatives market. He noted that the total number of outstanding futures contracts, or open interest, remains high near $42 billion. Though slightly down from recent peaks, this level is near historical highs and shows robust trader involvement.

Arab Chain also underlined the impact of rising funding rates on market sentiment. Presently, these funding rates show a dominance of long positions, suggesting a bullish market. However, with high open interest and increasing leveraged trades, this could also indicate a higher risk of volatility. An unexpected price shift could trigger widespread liquidations if funding becomes unsustainable, forcing exchanges to close positions.

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In a post published on July 12 on the X platform, on-chain analyst Boris provided insights into how the actions of Long-Term Holders (LTH) and Short-Term Holders (STH) of Bitcoin have impacted the market in recent months. His analysis was based on metrics evaluating the Accumulation versus Distribution activities of these two groups of Bitcoin holders.

The metrics used by Boris track and analyze wallet activities to ascertain whether holders are increasing or decreasing their Bitcoin holdings over time. The analysis showed that from the end of May to June, Long-Term Holders were seen to be accumulating Bitcoin, which is represented by the green graphs overshadowing the red ones.

On the contrary, during the same period, Short-Term Holders were seen distributing more than accumulating, as indicated by the predominance of red graphs over the green ones.

Boris credited the LTHs for Bitcoin’s resilience above the $100,000 support zone. He noted that despite the heavy distribution and retail selling pressure from STHs, Bitcoin maintained its value above 100K, thanks to the structural accumulation led by LTH wallets.

However, Boris reported a reversal in this dynamic recently. Long-Term Holders began distributing their Bitcoin holdings, possibly in an attempt to take profits given the cryptocurrency’s upward trajectory. Simultaneously, Short-Term Holders have started to accumulate Bitcoin, indicating a potential revival of retail interest or speculative entry amidst the current bullish rally.

According to Boris, this transition from LTH support to STH support might have triggered Bitcoin’s latest breakout, as short-term momentum is injected into the market. Looking ahead, the interplay between these holder classes could lead to more interesting price movements for Bitcoin. However, a decrease in short-term buying pressure in the absence of long-term support may lead to a retest of a lower support level. At the time of writing, Bitcoin is valued at $117,300, showing no significant movement in the past 24 hours.

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