@sebstastian
The Spent Output Profit Ratio (SOPR) measures the profit or loss of spent BTC outputs. When SOPR exceeds historical highs, it may indicate that holders are realizing profits aggressively, potentially signaling a market top. Conversely, SOPR values below 1 suggest holders are selling at a loss, often observed in capitulation phases. Combining SOPR with NUPL, exchange flows, and derivatives positioning provides a comprehensive view of market sentiment. Traders use SOPR to anticipate trend reversals, manage risk, and time entries or exits. While not foolproof, it remains a valuable on-chain metric to assess accumulation and distribution cycles, offering early insights into market turning points.
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