"The fact that short-term holders are not accumulating can mean demand for bitcoin remains weak," CryptoQuant Head of Research Julio Moreno told The Block. Moreno added that bitcoin long-term holders are accumulating in the face of this short-term holder capitulation. However, Moreno said that the opposite of this dynamic could play out if demand for bitcoin grows again, "leading to short-term holders buying from long-term holders."
The CryptoQuant analyst further highlighted charts that showed a notable shift in bitcoin ownership dynamics. They revealed that short-term holdersâthose who have held their bitcoin for 155 days or lessâhave significantly reduced their positions, particularly throughout July and August.
The number of bitcoins held by short-term holders has declined since late May. Image: CryptoQuant.
CryptoQuant contributor IT Tech said the dynamic could lead to medium-term price appreciation and market stabilization. Increased accumulation by long-term holders could lead to price stabilization and position the market for a potential rebound, while short-term holder sell-offs may create short-term downward pressure on bitcoin prices. The data shows a clear capital flow from weak hands (short-term holders) to strong hands (long-term holders), signaling market stability," they said.
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