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HomeCrypto NewsMarketBitcoin Long-Term Holders Profitable Again As Correlation With S&P 500 & NASDAQ Breaks

Bitcoin Long-Term Holders Profitable Again As Correlation With S&P 500 & NASDAQ Breaks


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Bitcoin long-term holders are now profitable again, signaling a potential major market rally.

The recent upswing by Bitcoin has brought long-awaited profitability for BTC investors who have held onto the cryptocurrency for a considerable time.

Data from on-chain analytics firm Glassnode has shown that Bitcoin’s long-term holders are finally profitable again after staying underwater for almost 12 months. This observation was made today by crypto data aggregator Satoshi Club, who noted that data marks “a potential indicator of a major market rally ahead.”


Additionally, Glassnode data also shows the Long-Term Holder- SOPR has finally crossed above the one mark for the first time since May 2022. The LTH-SOPR indicates the degree of realized profit and loss for all coins moved on-chain that have a lifespan of more than 155 days.

“Long-Term Holder SOPR variant tends to better reflect macro market shifts. Following an extended period of realized losses (LTH-SOPR < 1.0), the LTH cohort is finally transitioning back into a regime of profitable spending, a structure similar once again to past cycle transition points,” Glasnode wrote in its latest Week Onchain Newsletter.

Bitcoin Breaks Correlation with Traditional Assets

Meanwhile, following the recent surge, Bitcoin has also continued to lose correlation with traditional markets. The cryptocurrency was strongly correlated to Wall Street’s tech-heavy indexes during 2022 due to uncertainty in the unprecedented speed of rate hikes from the federal reserve. However, as 2023 unfolds, Bitcoin seems to be decoupling from traditional assets and entering a class of its own.

Crypto analyst Diamond XBT highlighted this development today, sharing data from IntoTheBlock, which currently suggests “there’s almost no correlation between BTC and S&P 500 or NASDAQ in the past 30 days.”


Interestingly, as Bitcoin detaches from these indexes, its colleration with Gold seems to grow stronger. Recently, on-chain analytics firm Kaiko Data noted, “Bitcoin 30-day rolling correlation with gold has surged since March and now stands at 57% – its highest level in almost two years.” This suggests that investors increasingly see cryptocurrency as the best alternative to gold as a hedge against inflation.

At press time, Bitcoin was trading at $29,287, down $0.63% in the past 24 hours, as per Coinmarketcap data.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Mark Brennan
Mark Brennanhttps://thecryptobasic.com/
Mark Brennan has been active in the cryptocurrency sector since 2014. His love and passion for the nascent industry drove him to develop interest in writing about important developments and updates about cryptocurrencies and blockchain. Brennan, who holds a Masters degree in Business Administration, learned about the potential of blockchain technology. Aside from crypto journalism, Brennan runs an education center, where he educates people about the asset class.

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