According to data from CryptoQuant, the 30-day change in Bitcoin supply held by short-term holders (STH) has dropped to a low not seen since 2012.
Bitcoin supply is shifting toward long-term holders (LTH), which are addresses that typically accumulate and hold Bitcoin for at least 155 days. However, a lack of demand from the STH group may be holding back Bitcoin’s ability to break out of its current price range, according to an analyst at a market intelligence firm.
“Historically, Bitcoin’s rise to new all-time highs has been driven by new investors entering the market, buying from the LTH pool and pushing the price higher. While LTH accumulation is a prerequisite for price growth, the reality is that Bitcoin needs new demand from the STH pool to sustain the price momentum. This has happened in previous bull cycles,” said Julio Moreno, head of research at CryptoQuant.
Data from CryptoQuant also shows a strong correlation between STH group activity and Bitcoin price.
“There is currently no significant demand from short-term holders.”
Bitcoin dominance hits highest level since April 2021
Meanwhile, Bitcoin's market capitalization has reached 54.9% of the total cryptocurrency market, marking its highest level since April 2021. According to a report from Kaiko Research, Bitcoin's dominance over the top 50 altcoins is now at its strongest level since the market approached its record high in March of this year.
During the August 5 sell-off triggered by a surprise interest rate hike in Japan, Bitcoin’s cumulative volume delta (CVD) — a key indicator of buying pressure — remained positive on U.S. exchanges. In contrast, many altcoins faced sharp sell-offs. This trend further cemented Bitcoin’s role as a “safe haven” amid market volatility, according to analysis from Kaiko Research.
“From August 4 to 6, amid one of the largest crypto sell-offs in recent years, bitcoin’s CVD — a key indicator of buying and selling pressure — remained strongly positive across U.S. exchanges. Meanwhile, altcoins, especially the five largest coins, experienced severe sell-offs across most exchanges,” analysts from Kaiko Research said.
The report also highlighted that the launch of Bitcoin ETFs in the United States in January further strengthened Bitcoin’s position as an investment asset, attracting institutional capital. In contrast, altcoins continue to face higher risks and greater volatility amid macroeconomic uncertainty.
