The morale among bitcoin hodlers remained high during the market correction. Most of those who acquired tokens this year were unwilling to let go of them, even if Bitcoin had its worst registered price drop..
A chart shared by blockchain analytics firm Glassnode revealed that most of those who bought bitcoin in 2021 have not sold them. If a strong hodl spirit in the middle of a volatile market seems odd, The SOPR (Spent Output Profit Ratio) metric could offer an explanation.
Glassnode calculates the SOPR by dividing the selling price by the paid price. The firm has a detailed article about the methodology used to obtain the SOPR and its implications. TL;DR, if the SOPR is above 1 then sellers are profiting. In a bear market, liquidations continue and the value falls below 1, where the losses outweigh the gains.
In February, even at its lowest point, the indicator never fell below 1, which is good news for those who believe the rally is not over.
Bitcoin SOPR didn’t dip under 1. Image: GlassnodeSimply put, Glassnode explains, new Bitcoiners didn’t panic sold during the market correction:
60-Day SOPR (entity-adjusted) reset without falling below one.
This indicates a high HODLing conviction from new investors, as coins that were bought in 2021 did not move at a loss during this last dip.#Bitcoin pic.twitter.com/lvMctNDEmd
— glassnode (@glassnode) March 5, 2021
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