Bitcoin Adjusted SOPR

Understanding Adjusted SOPR

The Adjusted SOPR chart plots the spent output profit ratio after leaving out outputs that are less than one hour old. SOPR divides the value of the bitcoin spent in a period, priced when it is spent, by the value of the same bitcoin priced when it was created. A reading above 1 means the coins moved at a profit in aggregate. A reading below 1 means they moved at a loss.

Why Adjust It

Outputs that are spent again within an hour, such as change returned to the sender or transfers between a holder's own wallets, add movements that say little about holders taking profit or loss. Leaving them out gives a cleaner reading of the profit or loss locked in when holders sell. The chart shows the ratio for all holders and for short-term holders, measured over a trailing 24 hour window.

How to Read It

Read the 1 line as the break-even level. Rallies tend to hold the ratio above it and sharp drawdowns push it below. Compare the short-term holder line with the all-holders line to see whether recent buyers or older coins are driving the move.