Glassnode Docs
WebsiteStudioInsightsTwitter
  • Welcome to Glassnode
    • Introduction
      • Studio
  • 📊Data
    • General Information
      • Timestamps and Resolutions
      • Data Availability
      • Data Finalization
    • Metric Catalog
    • Supported Blockchains
    • Supported Assets
      • Market Metrics Coverage
      • On-chain Metrics Coverage
    • Point-in-Time Metrics
  • 📖Guides & Tutorials
    • Getting Started
      • Use-Case Tutorials
        • Tutorial 1 - Navigating Market Tops and Bottoms
        • Tutorial 2 - Introduction to On-chain Activity
        • Tutorial 3 - Fundamentals of Proof-of-Work Mining
        • Tutorial 4 - Introduction to Supply Dynamics
      • Get started with Glassnode Metrics
      • Granular Cohorts for Key On-Chain Metrics
    • Metric Guides
      • Market Capitalization
      • Realized Capitalization
      • MVRV
        • LTH-MVRV
        • MVRV Ratio
        • MVRV-Z Score
        • STH-MVRV
      • SOPR
        • SOPR (Spent Output Profit Ratio)
        • aSOPR (Adjusted SOPR)
        • LTH-SOPR
        • STH-SOPR
      • Unrealized Profit/Loss
        • NUPL (Net Unrealized Profit/Loss)
        • Unrealized Profit
        • Unrealized Loss
        • LTH-NUPL
        • STH-NUPL
      • Realized Profit/Loss
        • Net Realized Profit/Loss
        • Realized Profit
        • Realized Loss
      • Coin Issuance
        • Puell Multiple
      • Stablecoin
        • SSR (Stablecoin Supply Ratio)
      • Coin Days Destroyed
        • CDD (Coin Days Destroyed)
        • Supply-Adjusted CDD
        • Binary CDD
        • CYD (Coin Years Destroyed)
        • Supply-Adjusted CYD
        • Reserve Risk
      • Liveliness
      • Dormancy
        • Average Coin Dormancy
        • Supply-Adjusted Dormancy
      • Lifespan
        • Spent Output Age Bands (SOAB)
        • Average Spent Output Lifespan (ASOL)
        • Median Spent Output Lifespan (MSOL)
      • NVT
        • NVT Ratio
        • NVT Signal
        • Velocity
      • Stock to Flow
        • Stock to Flow Ratio
        • Stock to Flow Deflection
      • Price Distribution
        • URPD (UTXO Realized Price Distribution)
        • SOPD (Spent Output Price Distribution)
      • Accumulation Trend Score
      • Long and Short-Term Holder Supply
        • Supply Held by Long and Short-Term Holders
      • Profit/Loss (Supply)
        • Percent Supply in Profit
        • Supply in Profit
        • Supply in Loss
      • Age Distribution
        • HODL Waves
        • Realized Cap HODL Waves
      • Profit/Loss (UTXO)
        • Percent UTXOs in Profit
        • UTXOs in Profit
        • UTXOs in Loss
    • On-Chain Concepts
      • Entity-Adjusted Metrics
      • On-chain Glossary
      • Understanding UTXOs - The Gold Coin Analogy
      • UTXO vs. Account-Based Chains
    • Workbench Guide
  • ⚙️API
    • Introduction
    • API Key
    • API Credits
    • Metadata
    • Bulk metrics (beta)
    • Endpoints
      • Addresses
      • Bridges
      • Blockchain
      • Breakdowns
      • DeFi
      • Derivatives
      • Distribution
      • Entities
      • ETH 2.0
      • Fees
      • Indicators
      • Institutions
      • Lightning
      • Market
      • Mempool
      • Mining
      • Point-In-Time
      • Protocols
      • Signals
      • Supply
      • Transactions
  • ℹ️Further Information
    • Changelog
      • 2025
      • 2024
      • 2023
      • 2022
      • 2021
      • 2020
    • Support FAQ
    • Affiliate FAQs
    • Exchange Data: Transparency Notice
Powered by GitBook
On this page
  • Indicator Overview
  • How is it measured?
  • Video Tutorial
  • User Guide
  • About
  • Coined By
  • Further Resources
  1. Guides & Tutorials
  2. Metric Guides
  3. SOPR

LTH-SOPR

LTH-SOPR is an indicator which reflects the degree of realised profit and loss for all coins moved on-chain that have a lifespan more than 155-days (long-term holders).

PreviousaSOPR (Adjusted SOPR)NextSTH-SOPR

Last updated 4 months ago

Indicator Overview

Long-Term Holder SOPR (LTH-SOPR) is a variant of that takes into account only spent outputs older than 155 days. As such, LTH-SOPR serves as an indicator for assessing the behaviour and profitability of smart-money investors who have greater fundamental understanding of the asset and more experience in market volatility.

are less likely to be spent, and as such are generally considered to be part of the illiquid circulating supply. LTH-SOPR filters for only these 'old coins' to estimate the amount of profit or loss that is realised by this cohort. This provides insight into the behaviour and sentiment of experienced and smart-money investors who are less likely to react to market volatility, and have higher fundamental conviction to hold the asset.

Over the course of 155-days (LTH threshold), it is common for market volatility and price to resolve in a direction, either above, or below the price when the UTXO was created (assumed cost basis). As a result, when a coin held by a LTH is spent, it tends to realise a sizeable profit or loss. Unlike the standard metric and variants ( and ), which typically oscillate around a value of 1.0, the LTH-SOPR often reaches relatively large (> 2.0) and small values (<0.8).

As such, LTH-SOPR tends to act a longer term macro cycle oscillator, with indicator values representing the aggregate profit/loss multiple realised by Long-Term Holders.

How is it measured?

LTH-SOPR is calculated by taking the SOPR value only for spent outputs as old as or older than 155 days.

LTH-SOPR=value⋅pricespent [USD] (of all spent outputs where age ≥ 155 days)value⋅pricecreated [USD] (of all spent outputs where age ≥ 155 days)\textrm{LTH-SOPR} = \frac{ \textrm{value} \cdot \textrm{price}_\textrm{spent}~{\color{gray}[\textrm{USD}]}~\textrm{\color{gray}(of all spent outputs where age ≥ 155 days)} }{ \textrm{value} \cdot \textrm{price}_\textrm{created}~{\color{gray}[\textrm{USD}]}~\textrm{\color{gray}(of all spent outputs where age ≥ 155 days)} }LTH-SOPR=value⋅pricecreated​ [USD] (of all spent outputs where age ≥ 155 days)value⋅pricespent​ [USD] (of all spent outputs where age ≥ 155 days)​

Video Tutorial

User Guide

A common assumption when performing analysis on spending patterns is to categorise coin holders using the following framework:

  • Short-Term Holders (coin lifespan < 155-days) are more likely to be new and/or inexperienced market entrants, particularly in bull markets. This cohort are more likely to react to short-term market volatility and re-spend their coins as the marginal buyer/seller.

  • Long-Term Holders (coin lifespan > 155-days) are more likely to be smart money investors who accumulate cheap coins in the bear and/or early bull cycle, and distribute expensive coins late in the bull cycle. This cohort is less sensitive to market volatility, particularly when coins held are at an unrealised gain.

Given Bitcoin's historically exponential price performance in bull markets, and significant draw-downs in bear markets, Long-Term Holders tend to realise relatively large profits or losses when spending their coins. The spending of 'old coins' may indicate both a change in sentiment and conviction within the smart-money cohort, and also a potential release of illiquid coins back into liquid circulation.

As price rises or falls significantly from an investors cost basis, the incentive to spend increases**.** For Long-Term Holders, market extremes can be considered within the following framework:

  • High LTH-SOPR Values indicate that on aggregate, LTHs are realising high profit multiples on spent coins. A LTH-SOPR value of 4.0 can generally be interpreted as LTHs realising an aggregate average profit of 300% (4.0 - 1.0 = 3.0) that day.

  • Low LTH-SOPR Values indicate that on aggregate, LTHs are realising losses on spent coins, which is typical only in bear markets. A LTH-SOPR value of 0.6 can be interpreted as LTHs realising an aggregate loss of 40% (0.6 - 1.0 = -0.4) that day.

LTH-SOPR can provide macro cyclical top and bottom signals as demonstrated in the chart below. Macro tops have historically been reached when LTH-SOPR values >10 are achieved, indicating profits of 900%+ are being realised by LTHs. Macro bottoms have historically been established where LTHs are realising significant losses with LTH-SOPR reaching 0.6 and below (losses of 40% or more).

About

Coined By

Further Resources

(March 2020)

Rafael Schultze-Kraft -

📖
View LTH-SOPR in Glassnode Studio
View LTH-SOPR in Glassnode API Docs
Glassnode
Breaking up On–Chain Metrics for Short and Long Term Investors
SOPR
Statistically, UTXOs older than 155 days
SOPR
aSOPR
STH-SOPR
Bitcoin: Long Term Holder SOPR
Bitcoin: Long Term Holder SOPR with marked Gains and Losses