#BTC Market Outlook

The short-term surge of Bitcoin breaking $105,000 has triggered the activity of (LTH) long-term holders. This type of investor has started actively locking in profits.
In a new report, CryptoQuant analyst Carmelo Aleman pointed out that long-term holders of BTC—those who have held coins for more than 150 days—have significantly increased profit-taking in recent weeks. The profit expenditure ratio of long-term holders of BTC (LTH-SOPR) hit an annual low of 1.32 on March 12.
With the improvement of market sentiment, the index rose to 2,274 by May 13. Aleman stated that this means the profit growth achieved over two months was 71.33%. This indicates that the selling profits of the coins spent by long-term holders (LTH) are much higher than at the beginning of the year.
Historically, the peak of LTH-SOPR BTC coincides with the distribution phase, during which seasoned investors begin to sell their assets before a possible downturn. However, Aleman wrote, "The market is still far from reaching its peak cycle."
This can be attributed to the stable positive financing rate of BTC, which is currently 0.0025%. This indicates that there is a high demand for long positions among futures market participants.