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Bitcoin Short-Term Holders Increase Their Stakes Amid Price Rally

According to data from Glassnode, a blockchain analytics firm, short-term holders (STHs) of Bitcoin have been accumulating more coins since early December 2023, while long-term holders (LTHs) have been reducing their exposure.

STHs are defined by Glassnode as investors who have held Bitcoin for less than 155 days. They have increased their holdings from 2,236,571 to 2,682,061 Bitcoin, a substantial increase of 445,490 BTC, or roughly 20%, between Dec. 3, 2023 and Feb. 19, 2024.

Long/Short-Term Holder Threshold | Source: Glassnode

Conversely, LTHs, who have held Bitcoin for more than 155 days, have seen their holdings dip by approximately 340,000 BTC during the same period. Their current holdings amount to 14,658,137 BTC.

This suggests that STHs are more bullish on the future prospects of Bitcoin, while LTHs are taking profits from the recent price rally. Bitcoin has surged by more than 150% since the beginning of 2023, reaching a new all-time high of over $100,000 on Feb. 16, 2024.

Supply Last Active 1+ Year Ago | Source: Glassnode

Glassnode has noted a historical trend of LTHs distributing their holdings in line with Bitcoin gains, often seen as “smart money” cashing in on the price rise. Despite this, an impressive 69% of coins have remained motionless for at least one year, indicating a strong hodling sentiment among the majority of Bitcoin investors.

Currently, the cumulative total of both short and long-term holders stands at roughly 17.3 million Bitcoin, leaving an estimated 2-2.3 million Bitcoin circulating on exchanges. This implies a low supply and high demand for the leading cryptocurrency, which could further drive up its price in the near future.

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