Definition ∞ STH-SOPR, or Short-Term Holder Spent Output Profit Ratio, is an on-chain profitability metric that assesses whether short-term holders are selling their Bitcoin at a profit or a loss. A value above one indicates that short-term holders are selling at a profit, while a value below one signifies sales at a loss. This ratio helps to gauge the immediate market sentiment and the likelihood of profit-taking or capitulation from recent buyers. It provides insight into the short-term market’s realized gains or losses.
Context ∞ Crypto news frequently references STH-SOPR to analyze market turning points and potential selling pressure. A reset of STH-SOPR to one during a bull market can signal a healthy correction, while sustained values below one often precede capitulation. Monitoring this metric is crucial for understanding the behavior of active traders and anticipating short-term price movements.
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