Bitcoin SOPR

Video Explanation

SOPR Explained

SOPR (Spent Output Profit Ratio) is a key on-chain metric that reveals whether Bitcoin is being sold at a profit or loss. The formula is simple:

SOPR = Value of BTC when spent / Value when acquired

Reading the SOPR Values

• SOPR > 1: Coins are being sold at a profit
• SOPR = 1: Break-even point
• SOPR < 1: Coins are being sold at a loss

You can also enable two additional SOPR moving averages from the chart legend:

• 7-day moving average - shorter-term trend
• 30-day moving average - longer-term trend

Price Coloring by SOPR Percentiles

The Bitcoin price line is color-coded based on SOPR percentile ranges:

• Dark Blue: Bottom 10% (extreme loss realization)
• Green: 25-50th percentile (moderate losses)
• Yellow: 65-75th percentile (neutral)
• Orange: 75-85th percentile (moderate profits)
• Red: Top 15% (extreme profit taking)

This coloring helps visualize how profit/loss taking behavior correlates with price movements and market cycles.

Origins of SOPR

SOPR was created by Renato Shirakashi, who first introduced it in his article "Introducing SOPR: spent outputs to predict bitcoin lows and tops". The metric leverages Bitcoin's transparent blockchain data to analyze money flow and infer market sentiment and behavior.