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.
