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Bitcoin’s recent price movement reflects a pause in the broader uptrend, with the asset trading at $117,901 following a near 5% weekly decline.
While the current downturn may signal a cooling of investor enthusiasm, on-chain indicators suggest the market may still have room to expand before reaching an exhaustion point. Notably, activity among long-term holders and derivatives traders reveals continued interest and potential for price volatility.
One of the standout indicators drawing attention is the Spent Output Profit Ratio (SOPR) for long-term holders (LTH), which has climbed to a new high for 2025.
SOPR Suggests Continued Room for Growth Before Cycle Peaks
According to CryptoQuant analyst Gaah, this metric tracks the profitability of coins moved by holders who have kept their Bitcoin for more than 155 days. The latest reading shows that LTHs are beginning to sell at a profit, but the indicator has yet to reach historically critical levels associated with market tops.
Gaah emphasized that although LTH SOPR has crossed the mid-range and currently sits slightly above 2.5, it remains well below the 4.0 threshold historically linked with macro tops in previous cycles.
This implies that long-term investors are realizing gains, but not to an extent that would suggest market euphoria or widespread distribution. In past bull cycles, SOPR readings above 4.0 marked the onset of significant corrections or cycle tops.
The gradual increase in profit-taking could indicate that the market is maturing while maintaining upward potential. Gaah notes that investors should interpret this as part of the natural progression of a bullish phase, though risks of correction still remain.
The ongoing accumulation and realization patterns from LTHs provide insight into how confidence and caution can simultaneously exist in market behavior.
Derivatives Market Remains Active Amid High Open Interest and Bullish Funding Rates
In a separate analysis, CryptoQuant analyst Arab Chain highlighted ongoing activity in the Bitcoin derivatives market as another crucial component of the current market landscape.
Open interest, which represents the total number of outstanding futures contracts, remains elevated near $42 billion. This level, though slightly down from recent peaks, is still near historical highs and reflects strong trader participation.
Arab Chain also highlighted the role of funding rates in shaping market sentiment. Currently, rising funding rates suggest dominance by long positions, indicating a bullish market environment.
When this sentiment is paired with high open interest, it may point to heightened risk of volatility, especially in an environment where leveraged trades are becoming more frequent. The analyst warned that a sudden price move could lead to widespread liquidations if funding becomes unsustainable, forcing exchanges to close out positions.
Featured image created with DALL-E, Chart from Tradingview
