Spent Out Profit Ratio (SOPR)
SOPR is a metric that indicates the profits and losses that have been made (BTC spent/transferred/sent). It is considered a reflection of market sentiment. Both the absolute value of the indicator and the prevailing trend provide information about the market’s spending behavior.
It is calculated by dividing the price you would have if you sold today by the price you had when you bought those bitcoins.
A value less than 1 indicates that current sellers are losing money and often causes a slowdown in sales, creating a support zone. More information.
Long-Term Hodler SOPR (LTH-SOPR)
Long Term Hodler SOPR is a variant of SOPR that only takes into account only spent bitcoin outflows older than 155 days.
It is an indicator that evaluates the behavior and profitability of investors who do not seek immediate profits and who tend to have more experience in market volatility.
LTH-SOPR filters only these ‘old coins’ (<155 days) to estimate the amount of profit or loss this cohort makes.
LTH-SOPR > 1 implies that the coins moved, on average, with a profit. It usually indicates a bull market.
LTH-SOPR < 1 implies that the coins moved, on average, are sold at a loss. It usually indicates a bear market.
Sort Term Hodler SOPR (STH-SOPR)
Short Term Hodler SOPR is a variant of SOPR that takes into account only spent sorties of less than 155 days. As such, STH-SOPR serves as an indicator to assess the behavior and profitability of investors operating in the short term.
STH-SOPR > 1 implies that coins moved in a certain time scale are sold, on average, at a profit.
STH-SOPR < 1 implies that coins moved in a certain time scale, on average, are sold at a loss.
Adjusted SOPR (aSOPR)
An adjustment was made to the SOPR to not take into account the movements of coins with fewer hours of life. This allows noises that are only one hour less than UTXO to be excluded, which has a minor implication compared to long-duration UTXOs.
As a result, the UTXO coverage spectrum is one hour < UTXO age.
SOPR Ratio (LTH-SOPR / STR-SOPR)
The SOPR Ratio is calculated as the SOPR of long-term holders divided by the SOPR of short-term hodlers. A higher value of the ratio means a higher gain spent from LTH over STH, which is often useful for spotting market highs.