STH-SOPR

Short Term Output Profit Ratio (STH-SOPR) is a ratio of spent outputs (alive more than 1 hour and less than 155 days) in profit at the time of the window.

Definition

Short Term Holder Spent Output Profit Ratio (STH-SOPR) is a ratio of spent outputs (alive more than 1 hour and less than 155 days) in profit at the time of the window.

It is calculated as the USD value of spent outputs at the spent time(realized value) divided by the USD value of spent outputs at the created time(value at creation).

Interpretation

The adjustment was made by not accounting for an hour less lived and 155 days more lived coins' movements to track short-term investors. This allows excluding long-term investors or coins and only focuses on short-term held movements.

As a result, the spectrum of UTXO coverage is an hour<UTXOs age<155 days.

By Value itself

• STH-SOPR value greater than 1 ( STH-SOPR > 1 )

  It implies that the coins moved in a certain timescale are, on average, selling at a profit.

• STH-SOPR value of exactly 1 ( STH-SOPR =1 )

  It implies that the coins moved in a certain timescale are, on average, selling coins at break even.

• STH-SOPR value less than 1 ( STH-SOPR < 1)

  It implies that the coins moved in a certain timescale are, on average, selling at a loss.

By examining trend

• Short-Term Holder SOPR trending higher It implies that short term investors are realizing their coins where trading condition is getting more profitable. This equals a higher market sentiment.

• Short-Term Holder SOPR trending lower It implies that short term investors are realizing their coins where trading condition is getting less profitable. This equals a lower sentiment in the market and one can see the potential of panic selling.