{"id":15122,"date":"2022-11-15T09:44:31","date_gmt":"2022-11-15T09:44:31","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/btc-losses-get-real-as-bitcoin-sopr-metric-hits-lowest-since-march-2020\/"},"modified":"2022-11-15T09:44:31","modified_gmt":"2022-11-15T09:44:31","slug":"btc-losses-get-real-as-bitcoin-sopr-metric-hits-lowest-since-march-2020","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/btc-losses-get-real-as-bitcoin-sopr-metric-hits-lowest-since-march-2020\/","title":{"rendered":"BTC losses get real as Bitcoin SOPR metric hits lowest since March 2020"},"content":{"rendered":"
Bitcoin (BTC) sellers are nursing their largest overall losses since March 2020, one on-chain metric suggests.<\/p>\n
Data from on-chain analytics firm Glassnode confirms that Bitcoin\u2019s spent output profit ratio (SOPR) has now fallen to two-year lows.<\/p>\n
As Bitcoin holders attempt to pull funds from exchanges into non-custodial wallets, those moving coins around are doing so at multi-year high losses.<\/p>\n
SOPR divides the realized value of coins in a spent output by their value at creation. In other words, as Glassnode summarizes, \u201cprice sold \/ price paid.\u201d<\/p>\n
As Cointelegraph reported, SOPR fluctuates around 1, and tends to be below that level during Bitcoin bear markets and above it in bull markets.<\/p>\n
This is logical, as unrealized losses increase through the bear market phase, leading to relatively larger overall realized losses once coins are sold.<\/p>\n
As such, the end of bear markets tends to see lower SOPR. As of Nov. 14, the metric’s 7-day moving averag was at 0.9847 \u2014 its lowest since the March 2020 COVID-19 cross-market crash.<\/p>\n