Bitcoin

when

Bitcoin speculators have been shifting away from short-term holdings, with data indicating that over 21,000 BTC have been moved from these accounts in the past month, according to a recent analysis by CryptoQuant. This movement is nearing record levels of net distribution for Bitcoin, as highlighted in a CryptoQuant Quicktake blog post on September 9.
The analysis pointed out a significant shift in Bitcoin ownership dynamics, where short-term holders (STHs), defined as those who have held their Bitcoin for 155 days or less, have reduced their positions by 21,600 BTC in the 30 days leading up to September 8. This is the largest decrease observed since mid-2021. IT Tech, a contributor at CryptoQuant, noted, “The last two weeks show a significant decline in STH net positions, indicating that short-term investors are selling their holdings in response to recent market volatility.”
Conversely, long-term holders (LTHs) are on an accumulation spree, with their net positions increasing by 22,000 BTC in the same period. This marks the largest accumulation phase in several years for LTHs, effectively balancing the scale of the STH sell-off. This dynamic suggests a shift of Bitcoin from “weak hands” to “strong hands,” potentially leading to market stabilization.
IT Tech further explained the implications of these shifts, stating, “Increased accumulation by LTH could lead to price stabilization and position the market for a potential rebound, while STH sell-offs may create short-term downward pressure on BTC prices.” The analyst also emphasized, “The data shows a clear capital flow from weak hands (STH) to strong hands (LTH), signaling a market stability.”
This transition comes at a time when STHs now hold just under 18% of the available Bitcoin supply, reflecting a trend where long-term support during bull markets frequently becomes a key metric for market stability. This shift in Bitcoin’s ownership could have important implications for its price stability and future market trends.

Short-Term Bitcoin Investors Sell Their Holdings, Data Indicates

Crypto Intelligence

Other articles published on Sep 10, 2024

Trump Threatens 100% Tariffs on Countries Ditching the Dollar

MFEV Celebrates 100% Sell-Out of Private Round ICO, Raising $10.25 Million in total Funding

Ripple Announces Smart Contracts for XRP Ledger, Expanding Features for NFTs, AMMs, and DEXs

LogX Reveals LOGX Tokenomics with 12% Allocation for Airdrops

Samsung Next Invests in Startale Labs, Partner in Sony’s Soneium Blockchain Development

Expert Predicts Bitcoin’s Long-Term Value Surge Amid Rising US Debt

Join our free newsletter for daily crypto updates!