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STH Supply Profit/Loss Ratio

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Price update 22 minutes ago
UTXO update 22 minutes ago

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STH Supply Profit/Loss Ratio Explained

The Short Term Holder (STH) Supply Profit/Loss Ratio compares the total Bitcoin supply held by short-term holders (UTXOs aged 155 days or less) that is currently in profit versus in loss, based on each UTXO's individual cost basis.

STH Supply P/L Ratio = (STH Supply in Profit − STH Supply in Loss) / (STH Supply in Profit + STH Supply in Loss)

Reading the Values


  • Ratio > 0: More short-term holder supply is in profit than in loss
  • Ratio = 0: Break-even point for short-term holders
  • Ratio < 0: More short-term holder supply is in loss than in profit

Why It Matters

The STH Profit/Loss Ratio helps identify key market turning points:

  • During bull markets, the ratio stays above 0 as new buyers remain in profit
  • Drops below 0 often signal local bottoms or capitulation events
  • Sustained periods below 0 can indicate bear market conditions
  • Bounces off the 0 level during uptrends confirm bullish support


Disclaimer
Any information found on this page is not to be considered as financial advice. You should do your own research before making any decisions.

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