Group of Bitcoin holders has grown in recent weeks
The following article attempts to determine the quality of life of people who are holding Bitcoin. However, before proceeding, what is meant by ‘quality of life’ in the current context? Well, as you might imagine, here it simply refers to how Bitcoin holders are doing – are they in trouble? Are they in a panic? Are they happy?
What has been mentioned above can be judged or known taking into account three crucial metrics.
SOPR, also known as “Spent Output Profit Ratio”, is a metric used to determine whether users who bought Bitcoin at various prices are profitable. Generally, when there is a settlement, many people who bought Bitcoin will be losing. However, people who buy Bitcoin during these sales will make a profit after the price returns from that settlement.
Likewise, for Bitcoin, at the time of this writing, the hourly SOPR index reached a new high, a level never seen since May 2020. This suggested that many people are profitable, that is, 70K Bitcoins previously purchased were profitable at a price of $ 13,312.
Then there is MPL, also known as Mobile Profits and Losses. This metric is similar to the one listed above, but it is different in the way it measures profits and losses. While SOPR takes into account the price of Bitcoin at the time of purchase and the current price, MPL highlights whether people are withdrawing their profits. This metric can be considered the starting point for the above metric.
Using this, we can tell whether a particular rally has ended [temporário] or not. So far, MPL has stressed that losses are rapidly decreasing, while profits are increasing. What does this imply? Well, that suggested that people are actually profiting, but not at a wild pace.
Last but not least, FGI [Fear Greed Index] showed that the community was observing a market feeling of extreme greed. This was expected, especially since people seem to be enjoying this new quality of life due to the increase in the price of Bitcoin.
In fact, the cryptocurrency’s value was promising as it broke through a prominent resistance of $ 12,400, going well beyond that. $ 13,900 will be a thorn in the way of Bitcoin, however, and if violated, then $ 15,250 would be the next target for the price of the world’s largest cryptocurrency.
It therefore appears that the quality of life of Bitcoin holders is very good.