Bitcoin SOPR Streak Above 1.0 Signals Strong Demand
The Bitcoin market is showing signs of strong demand as the entity-adjusted Spent Output Profit Ratio (SOPR) remains above 1.0 for three consecutive weeks, a streak not seen since August 19.
This metric measures whether coins being spent on-chain are being sold at a profit or loss, with exactly 1.0 representing breakeven. Above that, holders are selling at a gain, while below it, they're crystallizing losses.
The current SOPR reading of 1.008 provides a buffer above the danger zone, where sustained readings below 1.0 have historically coincided with capitulation events and prolonged downtrends.
ARK Invest's David Puell has offered a measured take on the situation, cautioning that a definitive market regime shift may require further confirmation. He notes that three weeks of profitability is encouraging, but three months would be more convincing.