SOPR measures the profit ratio of coins moved on-chain by dividing the realized value of spent outputs by their value at creation. A SOPR above 1 means coins are moving at a profit on average, while below 1 means they are moving at a loss.
SOPR measures the profit ratio of coins moved on-chain by dividing the realized value of spent outputs by their value at creation. A SOPR above 1 means coins are moving at a profit on average, while below 1 means they are moving at a loss.
The Spent Output Profit Ratio examines every Bitcoin transaction and compares the price at which each spent output was created to the price when it is spent. The aggregate ratio across all transactions in a given period reveals whether the market is predominantly realizing profits or losses. A SOPR of 1.05, for example, means coins are being spent at an average profit of 5%.
During bull markets, SOPR tends to stay above 1 because holders sell into rising prices, locking in gains. Dips to exactly 1.0 act as a support level — holders refuse to sell at a loss, and the bounce back above 1 confirms bullish structure. In bear markets, SOPR stays below 1 as capitulation drives transactions, and rallies back to 1.0 act as resistance where holders sell at break-even to exit positions.
The adjusted SOPR (aSOPR) filters out outputs younger than one hour to remove noise from exchanges and relay transactions. This adjusted version provides cleaner signals for cycle analysis. SOPR resets are among the most reliable on-chain patterns: in a bull market, a SOPR reset to 1.0 that bounces is a classic buy signal, while in a bear market, a SOPR rally to 1.0 that rejects is a classic sell signal.
A SOPR of 1 means coins are moving at exactly their break-even price on average. This level is psychologically significant because it represents the point where holders shift between profit and loss. How price reacts at SOPR = 1 reveals the prevailing market regime.
Standard SOPR includes all spent outputs, which can be noisy due to exchange internal transfers and short-lived relay transactions. Adjusted SOPR (aSOPR) excludes outputs with a lifespan of less than one hour, providing a cleaner view of genuine economic spending behavior.
SOPR is primarily a macro indicator best suited for identifying cycle phases and major trend changes. While short-term SOPR fluctuations exist, the signal is most reliable when used to confirm broader market structure over weeks and months rather than for day trading.