Coinbase Institutional analysis shows that the Spent Output Profit Ratio (SOPR) for short-term Bitcoin and Ether holders has been rising since late February, signaling sustained spot demand that is absorbing downward pressure from sellers. The metric suggests the market is establishing more resilient positioning as buyers continue to absorb supply from profit-taking activity.
SOPR measures whether holders are selling at a profit or loss by tracking the ratio of an output's value at spending time relative to its acquisition price. When SOPR exceeds 1.0, it indicates that on-chain participants are predominantly selling at gains. The upward trend in this metric for short-term holders—those holding assets for less than one year—suggests that recent buying activity has been strong enough to sustain price levels despite active selling by those taking profits.
The sustained elevation of SOPR across both major cryptocurrencies indicates a shift in market dynamics where institutional and retail spot buyers are willing to absorb supply at current price levels, reducing the likelihood of capitulation-driven selloffs. This positioning contrasts with periods of market weakness when short-term holders typically accelerate sales at losses, creating downward spiral conditions.