Short - Term Holder Spend Output Profit Radio - what this indicator means?

Short-Term Holder Spent Output Profit Ratio (STH-SOPR) is an on-chain indicator used to analyze the behavior of short-term investors in cryptocurrencies, mainly Bitcoin. It helps to assess whether investors who recently acquired their coins are doing so at a profit or loss.

What does STH-SOPR mean?

STH (Short-Term Holder) – refers to addresses that have held BTC for less than 155 days. These are usually more sensitive to market volatility investors, often so-called speculators.

SOPR (Spent Output Profit Ratio) – measures the ratio of the sale price to the purchase price for each transaction.

Interpretation of the indicator:

STH-SOPR > 1 – short-term investors sell their BTC at a profit.

STH-SOPR < 1 – sell at a loss.

STH-SOPR = 1 – break-even, i.e. selling at cost.

Why is it important?

Uptrend with SOPR > 1: Suggests that the market is strong and investors are taking profits, which does not harm the price.

Downtrend with SOPR < 1: Indicates that even with losses, investors want to get rid of BTC - this may mean capitulation.

Where can you track this indicator?

STH-SOPR can be found on on-chain analytical platforms such as:

1. Glassnode Studio

2. CryptoQuant

3. LookIntoBitcoin - less common, but you can find other similar data there

How to read the chart:

1. You choose a time frame (e.g. 1 year).

2. You watch for the moments of crossing level 1 - these are key points:

When the market enters a bull market, SOPR often bounces off level 1 (psychological support).

In a bear market, SOPR cannot break level 1 from below - it acts as resistance.

Summary:

STH-SOPR is a tool for assessing speculator behavior. It helps predict moments of capitulation or increased market confidence. It is best used in conjunction with other indicators such as MVRV, NUPL or Net Unrealized Loss.

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