Bitcoin’s latest price activity shows a halt in the larger upward trend, with the currency now valued at $117,901 after a nearly 5% drop over the week.
Despite the current dip indicating a potential cooling of investor interest, on-chain metrics hint that the market may still have growth potential before hitting a saturation point. Notably, the actions of long-term holders and derivatives traders continue to demonstrate interest, suggesting possible price fluctuations ahead.
A key metric garnering attention is the Spent Output Profit Ratio (SOPR) for long-term holders (LTH), which has reached a new high for 2025.
SOPR Indicates Potential Growth Before Market Peaks
According to CryptoQuant analyst Gaah, this measure tracks the profitability of coins moved by holders who have retained their Bitcoin for over 155 days. The recent data shows that LTHs are starting to sell for a profit, yet the indicator hasn’t hit historically significant levels that are typically seen at market peaks.
Gaah pointed out that although LTH SOPR has surpassed the mid-range and now stands slightly above 2.5, it is still far from the 4.0 level historically associated with major market tops.
This suggests that long-term investors are cashing in on gains, but not to a degree that would indicate market frenzy or extensive distribution. In previous bull markets, SOPR levels above 4.0 have typically signaled major corrections or peak cycles.
The steady increase in profit-taking might hint at a maturing market while still retaining upward momentum. Gaah advises that investors should view this as part of the natural cycle of a bullish phase, though the possibility of corrections remains.
The ongoing accumulation and profit-taking patterns by LTHs provide insights into how confidence and caution can coexist in market dynamics.
Derivatives Market Stays Active Amid High Open Interest and Bullish Funding Rates
In another analysis, CryptoQuant analyst Arab Chain noted sustained activity in the Bitcoin derivatives market as another vital aspect of the current market picture.
Open interest, representing the total number of outstanding futures contracts, remains high at around $42 billion. Although slightly lower than recent peaks, it still hovers near historical highs, indicating robust trader engagement.
Arab Chain also emphasized the impact of funding rates on shaping market sentiment. Currently, increasing funding rates point to a dominance of long positions, suggesting a bullish market stance.
When this sentiment is combined with high open interest, it could indicate an increased risk of volatility, particularly in an environment where leveraged trades are becoming more common. The analyst cautioned that a sudden price shift could trigger widespread liquidations if funding becomes unsustainable, compelling exchanges to close out positions.
Featured image created with DALL-E, Chart from TradingView
