What is the SOPR Ratio?

SOPR (Spent Output Profit Ratio) is a critical on-chain metric that measures the profit/loss ratio between the purchase price and the selling price of Bitcoins transferred (spent) within a specific timeframe. In the simplest terms, it shows whether investors in the market are currently selling at a profit or at a loss.

SOPR data takes market sentiment out of the realm of guesswork and grounds it in a mathematical foundation, giving investors a significant advantage, especially in identifying turning points (market bottoms and tops).

How to Interpret It? (The Critical “1” Level)

On the SOPR chart, the “1” level is the break-even point (selling at cost) and forms the heart of the analysis:

🟢 SOPR > 1 (Profitable Sales – Bullish Trend): A ratio above 1 indicates that moved coins are being sold at a profit on average. In strong bull markets, when this value drops toward 1 (investors reaching their cost basis), it usually acts as a great “buy the dip” opportunity. This is because, in an uptrend, when the price falls to cost, supply dries up, and investors refrain from selling.

🔴 SOPR < 1 (Sales at a Loss / Panic – Bearish Trend): A ratio below 1 shows that there is panic in the market and investors are, on average, selling below their cost (at a loss). In bear markets, SOPR rising toward 1 creates severe “selling pressure (resistance).” This happens because investors who have been waiting at a loss for months immediately start selling to break even the moment the price reaches their original purchase cost (the 1 level).

Sub-Metrics You Need to Know:

• STH-SOPR (Short-Term Holder): Shows the profit/loss ratio of coins younger than 155 days (short-term, hit-and-run traders). It is perfect for measuring short-term volatility and panic selling.

• LTH-SOPR (Long-Term Holder – HODLer): Shows the status of diamond-handed investors who believe in the market, holding coins older than 155 days. If the LTH-SOPR rises very rapidly, it means whales who have been waiting for years are taking profits (distributing) at the market top.