Bitcoin Struggles at $83K as Short-Term Holders Recoup Losses from Economic Uncertainty

Today’s on-chain metric indicates that Bitcoin SOPR ratio has moved below 1, showing short-term holders selling their tokens at loss. This data projects a bearish momentum for BTC in the short-term.

Today, on-chain data analyst CryptoQuant reported data indicating that Bitcoin’s Short-Term Holder Spent Output Profit (SOPR) ratio has dropped below 1, suggesting a possible bearish outlook for the digital asset. Historically, when SOPH falls below 1, it shows that short-term holders are placing their tokens into sales at a loss, suggesting possible capitulation and short-term price decreases. 

In the BTC market, there are long-term investors and short-term investors. Short-term holders are investors who keep coins for less than 155 days. On the other hand, long-term holders are the ones storing their tokens for longer than this limit.

STH Capitulation

“When this ratio drops below 1, it signals capitulation among STHs, often leading to short-term price declines.

We can confirm this trend by observing the $BTC being sent to exchanges at a loss.” – By @Darkfost_Coc

Link https://t.co/BUIo9caGck pic.twitter.com/QfNfFpT9VL

— CryptoQuant.com (@cryptoquant_com) March 31, 2025

Bitcoin’s SOPH dropped under 1

The SOPR ratio is a crucial indicator informing when Bitcoin investors are currently selling tokens at a profit or loss. When this ratio has value higher than 1, it implies that short-term holders are making more profits with their sales.

As per today’s metrics from CryptoQuant, Bitcoin’s SOPR ratio is currently below 1, indicating loss selling. It appears that recent heightened drop in Bitcoin prices caused further fear among short-term holders who are anxious to sell their tokens at loss to minimize further losses.

Bitcoin recently fell below the $80,000 mark and but regained strength, which enables it see mild recovery. However, the asset’s current failure to maintain its momentum could have led to escalated selling pressure.

Bitcoin price updates

The broader cryptocurrency market is currently witnessing a downtrend, fuelled by rising international trade tensions and massive liquidations, with Bitcoin continuing to lose strength for supporting uptrends.

Over the past two weeks, Bitcoin has been unable to surpass the $88k mark. Today, March 31, 2025, BTC’s price is currently standing at $83,265 after recording a 0.5% rise in the last 24 hours. Its incapability to move above the critical resistance level of $88,000 further lessens its ability to break the $90k zone anytime soon.

One of the key factors hindering Bitcoin from moving above $88,000 is persistent selling pressure from short-term holders. As highlighted above by CryptoQuant data, Bitcoin market is facing increased selling pressure from users who purchased at higher prices. This has resulted in massive losses among short-term investors following recent 22% drop from the asset’s ATH.

The bearish market trend is likely to continue as Bitcoin’s accumulation trend has dropped amid   heightened selling activity. New buyers are yet to move into the market to accumulate at lower prices. Global economic turmoil has played a substantial role in discouraging new buyers from entering the market.