Indicator Overview

The indicator measures the aggregate dollar value of profits currently held by Short-Term Holders (STHs) (coins held for less than 155 days).

This metric is calculated as the total difference between the current Bitcoin price and the acquisition price of all STH-held coins that are currently in profit. It represents the latent selling pressure from newer investors. A rising value signals increasing market euphoria and potential supply overhang.

How To Use

STH Unrealised Profit is a key measure of market saturation. Record or near-record spikes indicate massive unrealised gains held by new capital. Historically, these peaks represent local or major market tops because the high incentive to sell leads to large profit-realisation events. Conversely, low, compressed readings suggest minimal STH profit. This low level reduces the risk of mass profit-taking, which is constructive for price stability or an impending rally. In bear markets, the metric is typically suppressed, as most STHs are holding losses.