As the Federal Open Market Committee (FOMC) meeting draws near, short-term Bitcoin investors are increasingly optimistic, as highlighted by blockchain analytics company Glassnode.
According to on-chain metrics, these investors appear to be preparing for a favorable outcome from the Fed’s forthcoming announcement. Glassnode noted that the Spent Output Profit Ratio (SOPR) for recent purchasers has improved while Bitcoin maintained its value around $107,000. This suggests that short-term holders are starting to see profits again ahead of the Fed’s decision.
This surge in confidence is primarily due to Bitcoin recovering its cost basis for all holders who have owned it for less than three months. Glassnode estimates this range falls between $111,800 and $114,200. To sustain this positive sentiment, it is crucial for Bitcoin to stay above this threshold following the Fed’s announcement; otherwise, there may be a risk of a “sell-the-news” scenario unfolding in the market.