By Richard Hines
The Adjusted Spent Output Profit Ratio (aSOPR), a metric used to track bitcoin holdings and activities such as dumps and buys, has shown a significant drop, indicating a large dump of bitcoin assets to the market.
Investors Are Dumping Assets On The Market
Metric data shows desperation as Bitcoin holders rush to sell their tokens not caring about profits or losses. This recorded dump has outperformed any dump in more than five years.
The aSOPR fell below the 1-level, indicating that investors are selling off positions and are no longer concerned about losses.
According to Glassnode, times like this, when investors are eager to sell their tokens, eventually lead to a bull-run. At this time, it appears that opportunists see this as the ideal time to jump in and massively buy the dip.
According to Coinmarketcap data, Bitcoin’s value has been steadily declining as more dumps are rolled into the market on a daily and even hourly basis. This metric indicator’s value is now at the same level as it was during the bear market in 2018.
However, not only have downward trends been observed with this metric, but there has also been some price fluctuation.
This suggests that some investors are still looking to at least turn in a little profit by purchasing on dips and selling off with every slight price pump; while some are fudding.
Has The Crypto Market Hit Rock Bottom?
It’s unclear if the market has truly reached its rock bottom point and If investors can massively buy the dip before the bull season, as the majority will not want to lose out on a favorable market entry point.
More significantly, the FTX meltdown had dispelled some of the FUD, this crash had led to even bitcoin miners selling off their holdings in the reserves.
Since then, the metric aSOPR has experienced daily substantial lows, offering the possibility of hitting a new low as the crypto winter and the dump continues.
It is still unclear whether we have reached rock bottom or if there will be more rainy days ahead, but investors are advised to trade with caution and avoid being caught in a dump or being used as exit liquidity.
Also, the liquidation and crash of exchanges and firms has been seen to be weighing on the market in these times. Investors have also been seen converting their stablecoins and crypto assets to fiat currencies, where volatility cannot infiltrate.