On-chain data shows that the Bitcoin investors with a holding time greater than six months have seen an upward reversal in their supply for the first time in months.

Bitcoin Long-Term Holder Supply Has Just Turned Around

As pointed out by Capriole Investments founder Charles Edwards in a new post on X, the 6-month inactive supply has recently witnessed its first uptick since April. This part of the supply, covering tokens that have been dormant (that is, not involved in any transaction on the blockchain) since at least six months ago, belongs to investors popularly known as long-term holders (LTHs).

Statistically, the longer investors keep their coins dormant, the less likely they are to sell them in the future. As such, the LTH cohort with its relatively long holding time includes the resolute hands of the market. Despite their resilience, however, these investors have participated in selling during the past few months. Below is the chart shared by Edwards that shows the trend in the amount of supply dormant for longer than six months.

As is visible in the graph, the drawdown in the Bitcoin LTH supply changed for the worse during the cryptocurrency’s crash last month, indicating that the diamond hands took part in a significant amount of distribution. Since this selloff, however, the decline in the metric appears to have paused, at least for now. There has even been a small increase in the indicator recently, a potential sign of a shift in investor behavior.

Something to note is that while drops in the LTH supply can correspond to selling that’s occurring in the present, the same isn’t true in the case of an increase. An uptick in the metric isn’t a sign that members of the cohort are buying right now. Rather, it suggests some accumulation occurred six months ago, and now those coins have been held long enough to mature into the group.

That said, the trend is naturally still a positive sign for Bitcoin, as it implies HODLing behavior could be becoming more dominant on the network. The last time such a shift occurred was around the time of the cryptocurrency’s lows back in April.

What followed that LTH supply rise was BTC’s rally to new all-time highs (ATHs). Considering this, it only remains to be seen whether the latest shift toward long-term holding will lead to anything similar, or if the cryptocurrency’s decline is here to stay this time around.

BTC Price

Bitcoin briefly slipped under $84,000 on Monday, but its price has since seen some recovery as it’s now back at $87,500.

Bitcoin regained price levels above $90,000 after trading beneath this key zone for the majority of the past two weeks. Within this period, the premier cryptocurrency saw a decline to as low as $80,600, marking a more than 10% deviation from the aforementioned support. 

As the price stands fairly over $90,000, there seems to be a recovery underway. However, a closer monitoring of on-chain activity has revealed that the reality is diametrically opposite to widespread expectation.

LTH-STH SOPR Ratio Spikes To 2.63 — What This Means

In a recent QuickTake post on CryptoQuant, the on-chain analytics platform Arab Chain reveals a shift within the internal structures of the Bitcoin market. This report revolves around readings obtained from the Binance: BTC SOPR Ratio (LTH – STH) metric, which assesses and compares the profit-taking behavior of Bitcoin’s long-term holders (LTH) to that of its short-term holders (STH). 

Arab Chain highlights that the LTH-STH ratio recently saw a spike to 2.63, a reading which marks the highest level put in since August. Notably, this spike in the SOPR index comes amid Bitcoin’s rise to around $90,000, signaling an underlying spike in LTH sell-off despite this modest rebound.

This notion is confirmed by the Long-Term Holder SOPR itself, which reportedly to 2.58, indicating that members of Bitcoin’s most influential trend setters are currently exiting the market in deep profits.  Normally, the sharp move in the LTH–STH ratio, especially one that causes the establishment of a multi-month high,  usually represents a period of selling pressure that typically precedes price corrections. However, the current situation steers slightly away from this standard.

‘Profit-Taking Phase May Go On For Several Weeks’ — Analyst 

As the LTH SOPR reads 2.58, the STH SOPR stands at levels around the 0.98 mark, suggesting that the flagship cryptocurrency’s short-term holders are selling off their holdings either at break-even or even with some losses incurred. 

The market imbalance, therefore, reveals itself in that “long-term investors are capturing substantial profits and capitalizing on previous rallies to sell off, while short-term investors are unable to achieve clear gains.” Arab Chain explains that if the Bitcoin price decline should intensify, there could be additional acceleration dedicated to its fall down south. 

Historically, widening gaps between LTH and STH SOPR have often preceded defined movements in BTC’s market cycle. This behavior, according to Arab Chain, reveals that the market is likely entering a typical “cash-for-profit” phase, where its major holders sell off their holdings. Seeing as a surge of an almost comparable magnitude last took place in August, the firm conjectures that the market could see a major price reset, as opposed to the minor price fluctuation investors may be anticipating.

As of this writing, Bitcoin is worth about $90,652, recording no significant movement over the past day.

On-chain analytics firm Glassnode has revealed in a report how long-term Bitcoin liquidity has witnessed a sharp decline alongside the market downturn.

Bitcoin Long-Term Holder Liquidity Ratio Has Plunged Recently

In its latest weekly report, Glassnode has talked about how liquidity in the Bitcoin market has changed following the recent downturn. Glassnode has gauged the “liquidity” using the Realized Profit/Loss Ratio, an on-chain metric that measures the ratio between the profit and loss that BTC investors are realizing through their transactions.

Current demand momentum can be tracked using a version of this indicator that specifically tracks the profitability of the short-term holders (STHs), investors who purchased their coins within the past 155 days.

As the below chart shows, the STH Realized Profit/Loss Ratio was at relatively high levels earlier, but since early October, its value has plummeted.

With a value of just 0.07, the indicator is now sitting deep inside the loss region, a sign that the recent Bitcoin buyers have overwhelmingly been capitulating at a loss. “Such overwhelming loss dominance confirms that liquidity has evaporated, especially after the heavy demand absorption seen in Q2–Q3 2025 as long-term holders increased their spending,” explained the analytics firm.

The metric fell to similar lows back in Q1 2022, but so far, market weakness hasn’t been as prolonged. The report noted that if the ratio continues to be depressed, market conditions could mirror those from back then.

While short-term demand momentum has collapsed, the same hasn’t been true for long-term liquidity, at least not yet. Long-term momentum can be measured using the Realized Profit/Loss Ratio of the long-term holders (LTHs), representing the more resolute section of the market (holding time greater than 155 days).

From the above chart, it’s visible that the 7-day exponential moving average (EMA) of the Bitcoin LTH Realized Profit/Loss Ratio has witnessed a sharp decline as BTC has crashed.

Despite the drop, however, the metric’s value is still 408, implying LTHs are realizing, on average, a profit that’s 408 times the loss. This means that the long-term liquidity is still healthy compared to Q1 2022, or even the major bottom formations from the current cycle.

Glassnode warned, however, “if liquidity continues to fade and this ratio compresses toward 10x or lower, the probability of transitioning into a deeper bear market becomes difficult to ignore.”

It now remains to be seen how the LTH Realized Profit/Loss will change for Bitcoin in the near future, and if liquidity will see a further squeeze.

BTC Price

At the time of writing, Bitcoin is trading around $90,600, down 1.3% over the past week.