CryptoQuant Flags Rare BTC Market Reset Event: What It Means for Your Portfolio

Bitcoin's plumbing just flashed a signal that hasn't been seen in years. Analytics firm CryptoQuant is pointing to a rare market reset event unfolding on-chain—a potential cleanse that could set the stage for the next major move.

The Mechanics of a Reset

Think of it as the market hitting a giant 'refresh' button. This event isn't about daily price swings; it's a deeper, structural recalibration observed in key blockchain metrics. It typically involves the flushing out of weak hands, the redistribution of coins, and a return to a more stable foundational state. Historically, such resets have preceded significant trend changes.

Why Analysts Are Watching

When these resets occur, they often silence the noise. Short-term speculators get washed out, leverage deflates, and the asset's price discovers a firmer floor—or ceiling. For long-term holders, it's a moment of validation. For traders, it's a call to reassess strategies. It signals that the market's internal engine is cycling, preparing for a new phase, free from the excesses of the previous cycle. (It's almost as efficient as a traditional bank updating its legacy software—only faster and on a global ledger.)

The Bullish Implication

In crypto, a reset is rarely a bearish omen. Instead, it's viewed as a necessary purge. It consolidates strength, aligns investor time horizons, and builds a healthier base for accumulation. For Bitcoin, the ultimate hard-money asset, these events reinforce its cyclical nature and resilience. It doesn't mean volatility disappears, but the subsequent moves tend to be more decisive and driven by core fundamentals rather than hype.

The signal is on the board. The market's memory is being wiped clean. Now, we see what gets written next.

In Brief

• The price of Bitcoin falls back below $90,000, but this pullback hides a much deeper underlying dynamic.
• A key profitability indicator (the SOPR ratio) drops to its lowest level in two years.
• Long-term holders have stopped selling, marking a possible “reset” of the market.
• This decline in the ratio signals the end of a distribution phase and a purge of speculative excess.

Long-term bitcoin holders stop selling : a reset signal ?

In an analysis published on December 7, CryptoQuant reveals a major shift in the behavior of long-term bitcoin holders (LTH), while some analysts anticipate an end-of-year rally.

These holders, who have kept their BTC for more than 155 days, have apparently suspended their sales while the market dropped below 90,000 dollars.

“The bitcoin SOPR ratio (LTH-SOPR / STH-SOPR) has fallen to 1.35, reaching its lowest level since early 2024”, indicates analyst CryptoOnchain in a post shared on CryptoQuant’s Quicktake blog.

This ratio, which compares the profitability of UTXOs spent by long-term and short-term holders, is an essential indicator of potential selling pressure on the market.

This ratio drop is interpreted as the end of an intense distribution phase by LTH. In other words, these actors, historically considered the strongest in the market, have stopped taking profits or cutting losses.

CryptoQuant’s report mentions a “complete market reset”, suggesting that the speculative excess observed earlier in the bullish cycle has been cleared out. According to available data, the following is observed :

• The end of the selling pressure exerted by long-term holders, often drivers of major distribution phases ;

• A return to lower profitability levels, reducing the incentive to sell for these investor profiles ;

• A market purge of speculative excesses, which had pushed the ratio to highs at the peak of the cycle.

As CryptoOnchain summarizes, “the drop suggests a massive market reset. The speculative foam that had driven the ratio to highs has been purged”. Thus, this structural change could announce a new market equilibrium, but without a clear signal of an imminent bullish restart.

Short-term speculators in full hesitation

While the historic holders withdraw from the arena, short-term actors (STH) seem to have taken over, not without inconsistencies.

CryptoQuant observes erratic behavior by these speculators, characterized by net buying then selling moves over very short periods. “The net position change of STH over 30 days saw a strong upward peak on November 24, before turning negative on December 1”, the report specifies.

These data illustrate DEEP uncertainty among recent market players, whose decisions seem driven more by short-term fluctuations than by fundamental convictions.

This instability is also reflected in the fact that it is now mostly STH who generate profitable transactions. Unlike LTH who suspended their movements, speculators continue to enter and exit the market quickly.

The lack of clear direction and the emotional volatility of this segment could keep bitcoin in a turbulence zone, without a real support base to trigger a new bullish impulse.

The Bitcoin price reflects less inertia than a silent change. With the disappearance of selling pressure from historic holders, the market enters a waiting phase. It remains to be seen whether this reset prepares a lasting rebound or prolongs current instability.

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