Bitcoin recently hit a new all-time high of $118,856, a jump of almost 10%! Its market cap soared to over $2.34 trillion. But is this the peak, or is there more to come? Some on-chain data suggests there’s still room for growth.
Short-Term Holders Aren’t Selling (Yet!)
A market analyst looked at the Short-Term Holder Spent Output Profit Ratio (STH SOPR). This metric shows whether short-term Bitcoin holders (those who’ve held for less than 155 days) are selling at a profit or a loss. A reading above 1.0 means they’re selling at a profit.
Currently, the STH SOPR is at 1.02. This is interesting because it shows that while some short-term holders are making a profit (around 17-18%), they aren’t rushing to sell. Historically, when this number gets much higher (above 1.05 or so), it often signals a peak and a sell-off. The fact that it’s relatively low suggests the market isn’t overheating.
A Healthy Market?
The analyst also points to other positive signs:
-
Derivatives Market: Open interest (the total number of outstanding contracts) is rising, showing increased market participation. However, funding rates (essentially, the cost of borrowing Bitcoin) are neutral to slightly positive. This means traders aren’t excessively leveraged, reducing the risk of a sudden crash.
-
Trading Volume:
Daily trading volume is up significantly, indicating strong market activity.
The Bottom Line
All this points to a Bitcoin market that’s not overheated, despite the recent price surge. The analyst believes there’s potential for further price increases. While Bitcoin’s price has dipped slightly since the all-time high, the overall picture seems bullish.
