Spent Output Ratio

Definition ∞ The Spent Output Ratio (SOPR) is an on-chain metric used in cryptocurrency analysis that indicates whether Bitcoin or other digital assets are being spent at a profit or loss. It is calculated by dividing the realized value of a spent transaction output by its value at creation. A SOPR value greater than one suggests coins are being sold at a profit, while a value less than one indicates losses. This metric provides insight into the aggregate market sentiment of coin holders.
Context ∞ Crypto news and market analysis frequently cite the Spent Output Ratio to assess market psychology and identify potential market tops or bottoms. A SOPR consistently below one might signal a capitulation phase, while a high SOPR could suggest profit-taking. Monitoring SOPR helps traders and investors understand the broader market’s profitability and spending behavior.

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→Risk Reduction

→Technical Resistance

→UTXO Distribution

SOPR Divergence Confirms Strong Holder Conviction despite Price Drop

The SOPR divergence shows investors refused to sell at cheaper prices, signaling a conviction-driven bottom is forming.

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→Loss Realization

→On-Chain Analysis

→Investor Conviction

Holder Conviction Prevents Panic Selling Signaling a Major Bottom

A rare on-chain divergence confirms investors are refusing to sell at a loss, signaling a structural market bottom is in place.

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→Realized Loss

→On-Chain Profitability

→Market Capitulation

Short-Term Holders Are Selling at a Loss Signaling Seller Exhaustion

Recent investors are selling their Bitcoin at a loss, a key on-chain signal that short-term selling pressure is reaching its exhaustion point.

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→Market Stress

→Profitability Metric

Short-Term Holders Are Selling at a Loss: Is Capitulation Complete

Newer investors are selling their Bitcoin below cost, a sign of market fear that historically precedes a durable price bottom.