Spent Output Profit Ratio

Definition ∞ Spent Output Profit Ratio (SOPR) is an on-chain metric that measures the ratio of the realized value to the acquisition value of all spent transaction outputs. This ratio indicates whether market participants are, on average, selling their digital assets at a profit or a loss. A SOPR value greater than one suggests that the average coin spent is realizing a profit, while a value less than one indicates an average loss. It serves as a valuable indicator of overall market sentiment and profitability.
Context ∞ The Spent Output Profit Ratio is a widely utilized metric in crypto market analysis, providing insights into the psychological state of investors. News reports often reference SOPR to explain market trends, particularly during periods of price volatility. A key discussion point involves using SOPR to identify potential market bottoms or tops, as extreme values often precede significant price reversals. Understanding SOPR helps contextualize whether current selling pressure is driven by profit-taking or fear-induced losses.

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→Crypto Market Analysis

→SOPR Ratio

→Price Action

Bitcoin Profitability Resets, Signaling Potential Market Bottom

Bitcoin's SOPR ratio hit a multi-year low, indicating a full profitability reset and potentially signaling a market bottom.

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→Liquidity Injection

→Structural Bottom

→Dry Powder High

Short-Term Selling Exhaustion Meets Historic Stablecoin Buying Power

Short-term holders are done selling at a loss, creating a supply vacuum right as stablecoin reserves hit peak buying strength.

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→Short-Term Selling

→Leverage Flush

→Spent Output Profit Ratio

Investor Conviction Strengthens despite Price Drop Confirming a Structural Bottom

As price fell, the average seller took smaller losses, proving long-term holders refused to panic-sell cheap coins.

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→Demand Exhaustion

→Spent Output Profit Ratio

→Supply Clusters

Holder Conviction Diverges from Price Action Signaling Market Bottom Strength

As price fell, the average seller's loss shrank, confirming conviction: investors are refusing to sell at cheaper prices.

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→Distribution Phase End

→Long-Term Accumulation

→Supply in Profit

Ethereum Capitulation Is Over; Selling Pressure Exhausted at Key Support

The average Ethereum seller is now realizing a loss, confirming that weak hands have exited the market and significantly reducing future selling pressure.