Net_Realized_Profit_Loss_STH

Tech spec

Brief Description: The net profit or loss realized on-chain, in USD.

The Net_Realized_Profit_Loss_STH is an on-chain metric for Bitcoin that captures the aggregate realized profitability of transactions. A positive value indicates that coins are, on average, sold for profit, while a negative value means they are sold at a loss.

Metric variants

• _lth: Net_Realized_Profit_Loss_STH restricted to Long-Term Holders (age ≥ 155 days).
• _sth: Net_Realized_Profit_Loss_STH restricted to Short-Term Holders (age < 155 days).

Interpretation Interpreting Net_Realized_Profit_Loss_STH can provide insight into the sentiment and decision-making of Bitcoin investors. When the value is elevated, it suggests that investors are cashing out at a profit, possibly indicating a bullish sentiment or a local price top if profits are exceptionally high. Conversely, a low or negative Net_Realized_Profit_Loss_STH can signal widespread selling at a loss, hinting at bearish sentiment, investor capitulation, or it may mark market bottoms.

Advanced Explanation Net_Realized_Profit_Loss_STH quantifies the realized gains or losses by evaluating the price at the time coins are spent against their acquisition cost. The difference reflects the net profit or loss.

Net_Realized_Profit_Loss_STH = (Spent Output Profit - Spent Output Loss)