Analysis: Bitcoin's profitability indicator has fallen to a two-year low, potentially indicating that a local bottom is forming.

PANews reported on December 7th that CryptoQuant, an on-chain analytics platform, stated that the Bitcoin SOPR ratio (LTH-SOPR / STH-SOPR) has fallen to 1.35, its lowest level since early 2024. This decline coincides with Bitcoin's price pullback to $89,700. A higher ratio typically indicates that long-term holders (LTH) are actively profiting compared to short-term holders (STH). The plunge to 1.35 suggests that the large-scale distribution phase of older cryptocurrencies has significantly subsided. The gap in actual returns between experienced and new entrants is narrowing. This decline indicates that the market is undergoing a large-scale "reset," and the speculative bubble that previously drove the ratio up has been deflated.

Historically, when the SOPR ratio falls to these lower limits during an overall bull market cycle, it typically indicates that the selling pressure is nearing its end. If the ratio stabilizes or rebounds from the 1.35 level, it may suggest that a local bottom is forming, laying a more solid foundation for the next round of gains.