Indicator Overview

The indicator measures the total unrealised profit held by Short-Term Holders (STHs) (coins held for less than 155 days) normalised against the Bitcoin market cap. This ratio compares the latent profit held by the most speculative cohort to the total market size, adjusting for the network's growth over time.

How To Use

STH Relative Unrealised Profit identifies periods of extreme speculation and high risk. High readings (e.g., in the historical top zone) indicate that STH profit is a large fraction of the market cap. This signals an extreme supply overhang, typically marking major market tops as profit-taking incentive is maximized. Conversely, low readings (near the bottom of the cyclical range) suggest new investors hold little to no aggregate profit. This minimal profit-taking pressure is constructive and often occurs near favourable entry points or during periods of strong recovery.