What Is Spent Output Profit Ratio?
The Spent Output Profit Ratio (SOPR) measures whether coins being moved on-chain are being spent at a profit or loss relative to their acquisition price. An SOPR above 1 means coins are being moved at a profit on average; below 1 means at a loss. SOPR = 1 is the break-even line.
How Spent Output Profit Ratio Works
SOPR is calculated by dividing the realized value (price at spending) by the value at creation (price at acquisition) of all spent outputs in a given period. Variants include: adjusted SOPR (excludes relay and change outputs), STH-SOPR (only short-term holders), and LTH-SOPR (only long-term holders).
Why It Matters for Traders
SOPR touching and bouncing off 1.0 during bull markets is one of the strongest buy signals in on-chain analysis. It means holders who briefly dipped into unrealized loss chose to hold rather than sell at a loss — confirming the uptrend. SOPR dropping below 1.0 during a downtrend and failing to recover above it signals continued capitulation and bearish conditions.
