Analyst: Bitcoin short-term holders are capitulating

Crypto analyst Axel Adler Jr. has observed that short-term Bitcoin holders (STHs) are in a capitulation phase amid the asset's ongoing decline. He noted that the seven-day average of the STH Spent Output Profit Ratio (SOPR), an on-chain metric gauging whether holders are selling at a profit or loss, has fallen below one, indicating capitulation. Additionally, the Profit/Loss (P/L) Block indicator stands at -3, signaling extremely negative market sentiment. Adler interprets these two on-chain indicators as signs of STH capitulation. He stated that for the market to show signs of recovery, the SOPR must rise above one and the P/L Block indicator must return to positive territory. However, Adler cautioned that the decline could continue if current market demand fails to absorb the selling pressure from STHs.