Indicator Overview

The indicator measures the total dollar volume of profits realised on-chain each day specifically by Short-Term Holders (STHs). Short-Term Holders are defined as entities holding coins for less than 155 days. This metric is calculated by summing the total difference between the coin's price at the time it was last acquired and the price at which it was spent, but only for coins that have been held for a short duration. It provides a direct view of the profit-taking behaviour of the most reactive market participants.

How To Use

Extremely high spikes in STH Realised Profit occur during periods of peak market euphoria. These surges signify a massive influx of newer market participants rushing to sell their coins for a profit, and historically, major spikes in this metric have pinpointed local or major market tops. Elevated but non-record spikes often accompany significant price rallies within a bull cycle, indicating healthy profit rotation and supply redistribution but requiring careful monitoring for exhaustion. Conversely, during bear markets or periods of consolidation at market bottoms, this metric remains relatively suppressed near the zero line. This is because STHs are largely holding coins in a loss, and therefore, very little profit is being realized. Low readings confirm that profit-taking pressure from the most volatile cohort is minimal.