Decline in Short-Term Bitcoin Holders Could Impact Price Surge, Says CryptoQuant

CryptoQuant, a prominent market research firm, has observed a notable decline in the supply of short-term holders (STH) of Bitcoin (BTC), which may hinder the cryptocurrency's potential price surge.

The firm reports that the 30-day change in Bitcoin’s STH supply has hit its lowest point since 2012, signaling a significant shift in market dynamics.

Short-Term Holders’ Average Buy Price: A Key Indicator for #Bitcoin’s Next Move

“The yellow circles on the chart highlight areas where Bitcoin’s price either broke through or was supported by the average buy price of these 1-3 month STHs, leading to significant price increases.”… pic.twitter.com/uD2ZoaaJYG

— CryptoQuant.com (@cryptoquant_com) September 19, 2024

Currently, Bitcoin is being increasingly held by long-term holders (LTH), who typically accumulate the asset for 155 days or more. While this trend suggests confidence in Bitcoin’s long-term value, the inactivity among short-term holders could be dampening the price momentum.

Julio Moreno, Director of Research at CryptoQuant, noted that historically, Bitcoin has reached new highs when new holders purchase from long-term holders, driving the price up.

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He emphasized that while accumulation by LTHs is essential for future price growth, new demand from short-term holders is crucial for a sustained rally.

Moreno stated, “Bitcoin needs fresh demand from short-term holders to sustain a price rally. This is what happens during bull cycles.”

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.