Indicator Overview

The indicator compares the dollar value of unrealised profits to unrealised losses currently held by Short-Term Holders (STHs) (those holding coins for less than 155 days).

A ratio > 1 (green) means STHs currently hold more latent profit than latent loss.

A ratio < 1 (red) means STHs currently hold more latent loss than latent profit.

The metric uses a log-scaled oscillator for visualization.

How To Use

This ratio measures the financial health and emotional state of new investors. Extremely high values (deep green) mean STHs are sitting on massive profits. This indicates high euphoria and a high incentive to sell, historically aligning with major market peaks. Extremely low values (deep red) mean STHs are sitting on massive unrealised losses. This indicates maximum financial stress and the potential for a large-scale capitulation, historically aligning with cycle bottoms and low-risk accumulation zones.