Bitcoin Short-Term Holder SOPR Falls to 0.98 as Gains Disappear

Bitcoin (BTC) short-term holders’ spent output profit ratio (SOPR) fell to 0.98 and has remained below break-even since Oct. 30, indicating the spent coins are being realized at a loss.

SOPR compares the recorded value of spent Bitcoin outputs with their value when they were created. A reading below 1 indicates a loss on those outputs; 1 marks break-even. The measure tracks the profitability of spent coins, but it does not identify who controlled them or confirm that ownership changed. An earlier explanation of SOPR’s limits covers what the metric can show.

The short-term holder monthly average has dropped from 1.013 to 1, wiping out the group’s average gains. CryptoQuant analyst Darkfost said recent readings suggest the market may be moving toward capitulation. He said capitulation could continue for several days before reaching an extreme.