Bitcoin Nears $109K: What the Short-Term Holder Profit/Loss Ratio Tells Us

With Bitcoin trading just below its all-time high of $109K, market excitement is building once again. One key metric tracking sentiment among active investors is the Short-Term Holder (STH) Supply in Profit/Loss Ratio.

This ratio was particularly insightful during the April 7th correction, when it plunged to 0.03 — meaning nearly all STH-held supply was underwater at the $76K low. Since then, it has rebounded sharply, now sitting above 9.0, showing that over 90% of STH-held BTC is in profit.

While high ratio values indicate strong bullish momentum, they can also signal increased risk, as more investors may start taking profits. Historically, these levels can precede local tops if new demand doesn’t step in.

As long as this ratio stays well above 1.0, the uptrend likely continues. But a sustained drop below that threshold would be a warning sign of weakening strength and potential exhaustion in the current rally.