In a recent analysis of the Bitcoin market, a shift in holding patterns has been observed. Long-term holders (LTH) who have held Bitcoin for more than 155 days are selling, while short-term holders (STH) continue to accumulate.

As of January 1, 2024, LTH wallets held 15.8 million Bitcoin, compared to STH wallets which held only 3.7 million Bitcoin. However, the current figures show a decrease in LTH wallets to 14.4 million Bitcoin and an increase in STH wallets to 5.2 million Bitcoin.

Such shifts are typical in early bull markets. For instance, during the 2017 bull run, STH wallets held as much as 8.1 million Bitcoin, while in the 2021 bull run, the figure was slightly lower at 6.9 million.

However, caution is advised when the amount of Bitcoin in STH wallets rises to 6.5 million and above, as historical data suggests potential market volatility at these levels. This analysis provides valuable insights for both long-term and short-term investors in the blockchain industry.