Bitrabo Editorial
Recent on-chain analytics indicate that the Bitcoin supply owned by short-term holders is experiencing its most significant monthly decline since 2012.
Decline in Bitcoin Short-Term Holder Supply as Investors Hold On
In a recent post on X, CryptoQuant’s Axel Adler Jr. detailed that the short-term holder (STH) supply of Bitcoin has seen a notable drop in the last 30 days.
Short-term holders are defined as investors who have purchased their Bitcoin within the last 155 days. This group makes up one-half of the Bitcoin market, with the other half known as long-term holders (LTHs).
Generally, the longer an investor keeps their coins, the less likely they are to sell. This behavior positions STHs as the more opportunistic segment, while LTHs tend to be more steadfast.
Tracking the Bitcoin supply in the wallets of these distinct groups reveals their selling trends. Below is a chart that illustrates the recent change in Bitcoin supply held by STHs.
The chart shows a swift rise in supply held by STHs earlier this year, coinciding with a surge toward new all-time highs (ATH). This spike suggests a significant transfer of supply from LTHs to STHs, a common trend during bull markets where LTHs often take profits at peak moments.
Selling from LTHs during these upward trends is typically counterbalanced by increasing demand from newcomers drawn in by the rally.
As Bitcoin’s price has stabilized, LTHs seem to have reduced their selling activity. Recently, however, the trend has drastically shifted, with the 30-day change in STH supply entering negative territory.
Over the past month, there has been a 15% reduction in STH supply, marking the steepest decline since 2012, when Bitcoin was still developing.
This clearly indicates a rise in the LTH supply. It’s important to note, however, that this shift doesn’t imply that LTHs are actively buying from STHs.
Instead, it reflects the fact that some STHs are transitioning to the LTH category after surpassing the 155-day mark. This suggests a growing sentiment among STHs to remain patient during the current price consolidation, which can be a promising indication for Bitcoin’s future.
Current Bitcoin Price
As of now, Bitcoin is trading at approximately $59,500, representing a 5% increase over the past week.