Definition ∞ Bitcoin SOPR, or Spent Output Profit Ratio, is an on-chain metric that measures the ratio of Bitcoin’s realized value to its acquisition value. A SOPR value above one indicates that coins are being spent in profit, while a value below one suggests coins are being spent at a loss. It offers insight into the overall market sentiment of Bitcoin holders.
Context ∞ When crypto news discusses Bitcoin’s market cycles or investor behavior, SOPR often serves as a key analytical tool. A SOPR value dipping below one and then recovering can signal a potential market bottom, providing valuable context for investment decisions. Conversely, sustained high SOPR values might suggest market overheating.
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