On-Chain Highlights
Definition: Used Output Profit Ratio (SOPR) is calculated by dividing the Realized Value (USD) by the Value (USD) of the Used Output at the Time of Creation, or simply “Sale Price / Price Paid.”
Bitcoin's Used Output Profit Ratio (SOPR) has shown notable fluctuations throughout 2024. The SOPR has consistently hovered around or above 1.0, indicating that the majority of used output was sold at a profit.
However, in recent months, this ratio has undergone a period of sharp decline, notably dropping briefly below 1.0 in July and early August. This change suggests that holders suffered losses during these periods, likely due to a market-wide correction.
Looking at the long-term trends since 2018, SOPR has been closely tied to Bitcoin price fluctuations, often spiking during significant price increases. Recent movements in SOPR indicate that the market is grappling with post-halving volatility.
As Bitcoin continues to trade near the $60,000 mark, the SOPR action will be important to watch for signs of whether the market is returning to profitability or whether further losses are in store.
