Bitcoin Long-Term Holder Profits Taper Off, Frustrating Price Movement

Bitcoin's long-term holders have been experiencing a fragile phase in recent times, as their annual realized profits continue to taper off. A recent analysis by CryptoQuant's pseudonymous analyst, Darkfost, has revealed that the Long-Term Holder Average Monthly SOPR has fallen under 1, indicating that these investors are now realizing losses on average each month.

While this may seem concerning for Bitcoin's price, it is essential to note that the annualized SOPR remains positive, sitting at approximately 1.84, which represents around 84% in average realized gains. However, the trend is downward, and the LTH SOPR has not exceeded 3.4 throughout the current cycle, which is roughly half of what was seen in the previous cycle's peak.

Historical data suggests that bear markets have formed only after the SOPR dropped towards the 0.6 region, indicating average realized losses of around 40%. While the current reading on the metric is below 1 every month, it is still far from the zone representing capitulation.