I just saw several discussions about SOPR on the timeline and realized that many still don’t fully understand this indicator. Let me explain simply what SOPR is and why it should matter to you.

The SOPR, or índice de beneficio de producción gastada, is basically a measure that tells you whether those moving bitcoin on the chain are making or losing money. It’s calculated like this: you take the price at which the coins were sold today, divide it by the price at which they were originally bought. That is, selling price divided by purchase price. That’s it.

Now, if SOPR is above 1, it means that on average, the coins that were moved that day were sold at a profit. The selling price was higher than the purchase price. When SOPR drops below 1, the opposite happens: coins are sold at a loss. And if SOPR touches exactly 1, basically they’re sold at break-even—neither profit nor loss.

What’s interesting is to see what happens when SOPR peaks stay high and consecutive. That generally indicates a constant distribution on the chain, typically during a bullish rally. When you see SOPR rise and keep rising, it means more coins in circulation are being moved with realized gains. And here comes the important part: as more coins are spent with gains, the probability increases that we’re near a local top or even a larger cycle high.

In summary, SOPR gives you a clue about the behavior of smart holders. If you understand this indicator well, you have a pretty useful radar for identifying distribution points in the market. It’s worth keeping an eye on.