Glassnode
BTC's entity-adjusted Spent Output Profit Ratio (SOPR) is holding above 1, the line that separates coins moving on-chain at a profit from those moving at a loss. The reading implies the current bid is strong enough to absorb profit-taking without price immediately rolling over.
Why it matters
A sustained entity-adjusted SOPR above 1 is the on-chain signature of a bull market. It tells you demand is still absorbing coins that sellers are willing to part with at a gain, rather than forcing those sellers to capitulate below cost. In past cycles, prolonged reads above 1 have characterized the middle of structural bull phases, where distribution happens orderly and the bid keeps reappearing on dips.
Market impact
The metric's asymmetric signal sits in the break. A move back below 1 would mean the marginal seller is once again moving coins underwater, a classic late-cycle signature that demand is fading and overhead supply is starting to weigh on price. Until that prints, the data says the bid is structural: profit-taking absorbed, not capitulated through.
Frequently asked questions
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What is BTC's entity-adjusted SOPR?
SOPR, or Spent Output Profit Ratio, measures whether coins moving on-chain are being sold at a profit or a loss. An entity-adjusted version clusters addresses that belong to the same wallet or entity, so the read reflects true market behaviour rather than internal transfers or exchange housekeeping.
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Why does a sustained SOPR above 1 matter?
A prolonged read above 1 means coins are being moved on-chain at a profit. In past cycles, that texture has characterized the middle of structural bull phases, where distribution happens orderly and the bid keeps reappearing on dips.
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What would a break back below 1 signal?
A move below 1 would mean the marginal seller is once again moving coins underwater. That is a classic late-cycle signature that demand is fading and overhead supply is starting to weigh on price.
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How is entity-adjusted SOPR different from raw SOPR?
Raw SOPR scores every on-chain transaction, which can inflate or distort the read with internal wallet transfers and exchange sweeps. Entity-adjusted SOPR clusters addresses belonging to the same entity and treats their flows as one unit, isolating real market profit versus loss behaviour.
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What does the current read say about BTC's bid?
The data says the bid is structural rather than reactive. Profit-taking is being absorbed by demand instead of forcing sellers to capitulate, the defining texture of a sustained bull phase that has historically ended only when SOPR breaks below 1.
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