Daily Bitcoin On-Chain Snap #10

Bullish Signal last seen in July 2020 as LTH SOPR slips under 1

The long-term SOPR indicator provides insight into the profitability of recently moved BTC, with a focus on coins that are six months or older. On 28 September, a small percentage of long-term holders sold bitcoin at a slight loss. For comparison, the last time the indicator was below 1 was in July 2020, shortly before a massive bull run for BTC.


Quick reversal in Institutional Positioning as Funding Rates turn Positive

We questioned how long funding rates would remain negative and we received an answer. When funding rates are negative, short positions pay long positions periodically for leverage and vice versa. As such, funding rates briefly flipped negative on 21 September amid China FUD and institutional bearish positioning leading up to the quarterly BTC expiry on 24 September. The scenario played out similarly to previous month-end situations, with a sharp reversal in funding rates and a brief rally in BTC.

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