Definition. The STH Realized P/L Ratio is simply the ratio between the STH Realized Profit and Realized Loss, plotted green while above 1.0 and red while below, with price in grey. It provides a view on macro trend, shifts in market sentiment, and the directional dominance of value flowing in/out of the network.

Technical. The ratio is smoothed with a 7-day EMA and split at the 1.0 equilibrium level:

• STH Realized P/L Ratio = ema(STH Realized Profit / STH Realized Loss, 7) — green when >= 1, red when < 1

Both inputs are the entity-adjusted (account-based) realized profit and loss metrics.

Interpretation. The STH Realized P/L Ratio can be used on both longer and shorter term timeframes and moving averages to provide insight into:

• Macro market trends whereby profit dominance is typical of uptrends 🟢, and loss dominance typical of downtrends 🔴.

• Breaks above/below 1.0 suggesting regime shifts signalling a potential shift in profit/loss dominance alongside market strength/weakness.

• Retests of 1.0 within an established trend signalling a market equilibrium and decision point is reached.

Because Short-Term Holders' cost basis sits close to the prevailing price, this cohort's ratio reacts quickly to local market direction — it is the faster, more sensitive sibling of the Long-Term Holder ratio, and repeated failures to reclaim 1.0 during a correction have historically marked deteriorating near-term sentiment.

Notes. Realized P/L Ratio has a similar interpretation framework to the SOPR metric, with a detailed breakdown available on Glassnode Academy. The Long-Term Holder counterpart is Long-Term Holder Realized Profit / Loss Ratio, and a momentum view of this ratio is charted in STH Realized P/L Ratio Momentum. Built from STH Realized Profit and STH Realized Loss.