Bitcoin (BTC) on-chain profit indicators measure whether moved coins gained value and by how much, but they cannot establish that a holder sold or changed ownership.
The Spent Output Profit Ratio (SOPR) compares an output’s value when it is spent with the value it had at creation. A reading above 1 means the measured outputs were worth more when spent than at creation; below 1 indicates lower value, while a reading near 1 means little difference. SOPR describes the outputs counted in a period, not the people behind them.
Realized profit totals gains when a coin’s value at its latest movement exceeds its value at the previous movement. The measures answer different questions: SOPR expresses a ratio, while realized profit shows the dollar scale of gains. As an illustration, a bitcoin valued at $40,000 on its prior movement and $84,000 at the next would produce a $44,000 realized gain under the measure.
Transfers between wallets under common control and custody changes can also alter the calculation. Some accounting methods record a coin as sold at its next on-chain movement; this entry alone does not establish that an exchange transaction took place.
Aggregate SOPR groups activity by spent outputs, so it cannot reveal how many holders generated the movements. Long-term-holder SOPR counts outputs after at least 155 days of holding. Adjusted SOPR omits outputs held for less than an hour. These filters narrow which movements count but do not identify the owners.
Reading SOPR alongside realized profit provides both a profitability ratio and the dollar scale of recorded gains. Price and exchange-flow data can add market context, but neither profit measure confirms who sold coins or whether the market has peaked.
