Bitcoin Price Falls Below $80,000
Bitcoin (BTC) has dropped below the $80,000 mark, failing to maintain the upward momentum seen earlier in the day. As per CryptoSlate data, Bitcoin was trading at $77,400 at the time of writing, marking a 5.84% decrease over the past 24 hours.
On-Chain Data and Market Trends
Recent on-chain data suggests that some buyers who purchased Bitcoin recently are now experiencing losses, contributing to the current downturn. Despite this, the market structure shows signs of potential recovery, as highlighted in the latest “Bitfinex Alpha” report.
BTC has experienced a 13% decline over the last week, with the Spent Output Profit Ratio (SOPR) indicating investor profitability. The SOPR has entered a sustained period of losses for the first time since October 2024.
Understanding the Capitulation Phase
The SOPR measures whether Bitcoin investors are selling at a profit or a loss. A consistent drop below 1, considered a neutral zone, indicates that a significant portion of the market is selling at a loss.
Recent data shows daily realized losses averaging $818 million over the past two weeks, with specific dates like Feb. 28 and March 4 witnessing significant losses. The Short-Term Holder (STH) SOPR, tracking newer market participants, recorded its second-largest negative print of this cycle at 0.95, indicating substantial losses for recent buyers.
Deep negative prints in the STH SOPR typically signal capitulation events, where panic-selling clears out weaker investors, creating opportunities for stronger hands to accumulate assets.
An SOPR decline below 1 signifies loss-driven selling, often seen in major corrections. However, quick recoveries from this level indicate buyers defending cost basis levels, reinforcing bullish trends.
Potential Outcomes and Market Stability
Capitulation events like these historically precede market stabilization, as weaker investors exit and stronger ones begin accumulating assets. If Bitcoin’s bullish market structure remains intact, the SOPR should stabilize above 1, indicating re-accumulation and restored investor confidence.
However, prolonged weakness near negative levels close to 1 could suggest further downside risks, making SOPR a critical metric to monitor in the short term. Bitfinex analysts also highlight the impact of macroeconomic and geopolitical uncertainties on market movements, emphasizing the importance of observing buy-side absorption and exchange-traded flows.
Bitcoin Market Data
As of 7:05 pm UTC on Mar. 10, 2025, Bitcoin holds the top rank by market cap with a price decrease of 5.99% over the past 24 hours. The cryptocurrency has a market capitalization of $1.54 trillion and a 24-hour trading volume of $53.31 billion.
Crypto Market Summary
At the same time, the total crypto market is valued at $2.53 trillion with a 24-hour volume of $130.79 billion, and Bitcoin dominance stands at 60.89%.
