Bitcoin’s Profitability Predicament 🤔

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Bitcoin (BTC), that digital goldTM everyone’s so obsessed with, finds itself at a crossroads, a fork in the road, you might say. Key metrics are sending out distress signals, hinting at a potential shift in momentum and profitability that has the cryptosphere on edge.

According to Glassnode, the oracle of all things Bitcoin, the STH-SOPR (7D SMA) is currently flirting with the breakeven level of 1.0. Now, what does this mysterious STH-SOPR business mean? Well, imagine a bunch of short-term Bitcoin holders, those who bought yesterday and are hoping to sell for a quick buck today. This indicator, the STH-SOPR, looks at how much they’re profiting (or losing) on their Bitcoin transactions.

#Bitcoin’s STH-SOPR (7D SMA) is testing breakeven (1.0) once again. Historically, breaking above 1.0 confirms a shift in momentum, while failure to do so often leads to renewed sell pressure. The last attempt in early Jan was successful but short-lived:

— glassnode (@glassnode) February 24, 2025

Historically, this indicator has been a bit of a fickle friend. When it breaks above 1.0, it’s like a green light for Bitcoin bulls, signaling a potential surge in prices. But when it fails to break above, it’s like a red flag for bears, suggesting a possible downward spiral. The last time Bitcoin tried to break above 1.0, it was a brief fling, a moment of glory that quickly fizzled out.

Adding to the drama, Glassnode is keeping a close eye on Bitcoin’s STH-SOPR Multiple, which basically compares short-term profitability trends. This indicator, my friend, is currently in the red zone, implying that short-term holders are crying in their virtual wallets. They’ve been realizing more losses lately, and it’s not pretty.

So, what does this all mean for the future of Bitcoin? Glassnode, in its infinite wisdom, suggests that with the STH-SOPR struggling at breakeven and the SOPR multiple flashing red, the probability of Bitcoin getting rejected at 1.0 is high. Basically, it’s a bit of a coin toss.

But hey, if Bitcoin somehow manages to break above 1.0, it would signal a major shift in profitability and could send the crypto market into a frenzy. It’d be like a roller coaster ride, a wild adventure, a digital gold rush! 🎢

Markets on edge ahead of key releases this week

As for Bitcoin’s price, well, it’s currently taking a breather, down 0.15% in the last 24 hours to $95,809. The broader crypto market is also feeling a bit down in the dumps, with investors taking profits after the recent Bybit hack and some lingering macroeconomic concerns.

The week ahead is packed with economic data releases that could shake things up. Investors are eagerly awaiting the GDP growth rate figures, which will give us a glimpse into how the U.S. economy performed in Q4, 2024. And on Friday, the personal consumption expenditure index

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2025-02-24 18:24