Bitcoin Accumulation Trends Among Short-Term Holders
Recent data from Glassnode indicates that short-term bitcoin (BTC) holders, often referred to as STHs, have amassed an impressive 1.5 million BTC since September, bringing their total holdings to over 4 million BTC. This accumulation translates to an average of approximately 300,000 BTC per month. During the same timeframe, the price of bitcoin experienced a remarkable surge, climbing from around $60,000 to a peak of $109,000 before retreating below the $100,000 mark.
Glassnode classifies STHs as individuals who have held their bitcoin for less than 155 days. Historically, in previous bull market cycles, bitcoin’s price peaks have often coincided with a decrease in buying momentum from these short-term holders. This phenomenon has been observed in prior cycles, specifically in 2013, 2017, and 2021. Notably, during those peak periods, STHs held significantly larger amounts of bitcoin: 5 million BTC in 2013, 6.2 million BTC in 2017, and 4.6 million BTC in 2021. In stark contrast, the current holdings of 4 million BTC suggest that STHs are comparatively less invested, hinting that new market entrants may still have the potential to continue accumulating BTC. This situation implies that the ongoing cycle may have further room to expand.
In contrast, long-term holders (LTHs)—investors who have retained their bitcoin for over 155 days—have offloaded approximately 1.2 million BTC during the same period. This trend points to substantial profit-taking following bitcoin’s robust rally that began in November. The ongoing distribution of bitcoin by LTHs has played a pivotal role in the stagnation of bitcoin’s price action since mid-November, highlighting the dynamic interplay between short-term and long-term market participants.
