Bitcoin's Spent Output Profit Ratio shows volatility amid post-halving corrections

Onchain Highlights

DEFINITION: The Spent Output Revenue Ratio (SOPR) is computed by dividing the realized worth (in USD) divided by the worth at creation (USD) of a spent output. Or just: worth offered / worth paid.

Bitcoin’s Spent Output Revenue Ratio (SOPR) has displayed marked fluctuations all through 2024. The SOPR has constantly hovered close to or above 1.0, indicating that almost all of spent outputs had been offered at a revenue.

Nevertheless, in latest months, the ratio has witnessed durations of sharp declines, notably in July and early August, briefly dipping under 1.0. This shift means that holders had been realizing losses throughout these durations, doubtlessly as a consequence of broader market corrections.

SOPR: (Supply: Glassnode)

Trying on the longer-term pattern since 2018, the SOPR has been intently tied to Bitcoin’s worth actions, usually spiking throughout vital worth rallies. The latest conduct of the SOPR signifies a market grappling with post-halving volatility.

As Bitcoin continues to commerce close to the $60,000 mark, the SOPR’s actions shall be essential to observe for indicators of whether or not the market is transitioning again to profitability or if additional losses might be anticipated.

SOPR: (Source: Glassnode) — SOPR: (Supply: Glassnode)

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