SOPR (Spent Output Profit Ratio)

SOPR (Spent Output Profit Ratio) is an on-chain metric that analyzes every Bitcoin transaction and calculates whether coins being moved are in profit or at a loss. Specifically, SOPR = (price at time of current spend) / (price at time of acquisition). An SOPR above 1.0 means coins are being moved at a profit; below 1.0 means they're being moved at a loss.

The behavioral insight behind SOPR is powerful. People who are selling at a profit are willing to sell; people selling at a loss are capitulating. When SOPR drops below 1.0 and the market holds (or SOPR quickly recovers above 1.0), it indicates strong hands are buying from weak hands who are forced to sell at a loss — a classic accumulation signal. The most significant SOPR bottoms in Bitcoin's history corresponded with cycle bottoms.

During bull markets, SOPR tends to stay above 1.0. When it dips briefly below 1.0 and bounces, these dips often represent excellent buying opportunities — holders briefly panic, sell at a loss, and the resulting price drop is quickly absorbed. When SOPR is consistently high (1.05-1.15), it suggests widespread profit-taking and increasing sell pressure, typically a late bull market signal. The Adjusted SOPR (aSOPR) filters out very short-term transactions (coins moved within an hour) to reduce noise from wallet management operations that don't represent actual buying/selling decisions.