Short-Term Holders Dominate as Bitcoin Rebounds—What’s Next?
After a period of decline, Bitcoin has recovered its momentum, with its price now at $87,992, reflecting a 6.9% increase in the past 24 hours. Recent price changes have attracted attention to dynamic shifts in supply, especially between short-term holders (STH) and long-term holders (LTH).
This trend is analyzed by CryptoQuant contributor XBTManager opinion Enter Bitcoin’s current market cycle and what will happen next.
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According to XBTManager, Bitcoin’s all-time high (ATH) triggers an increase in STH supply, while LTH supply drops. This transition is usually Signal market changesas long-term holders start selling their assets, while short-term traders accumulate.
This dynamic has historically played a role in determining peak levels, as short-term holders’ activities have increased speculative interest.
XBTManager explains that analyzing who buys and sells Bitcoin is crucial to identifying market trends. As long-term holders sell their BTC, supply is transferred to the hands of short-term traders, who usually react faster to price fluctuations.
This shift indicates that Bitcoin may be Callback phase After its recent ATH, it leads to a potential period of price consolidation. In addition, institutional buyers and ETFs continue to accumulate Bitcoin, and the behavior at this stage is similar to that of short-term holders.
Microscience (MSTR)is a major corporate Bitcoin investor and also follows a retail buying model. Despite institutional inflows that support Bitcoin prices, XBTManager warns that long-term consolidation periods can be achieved due to liquidity demand.
Analysts suggest that once STH starts selling and LTH starts to accumulate again, the market may stabilize and create more A favorable environment Long position.
What’s next for Bitcoin?
Although Bitcoin’s supply shift indicates a cooling phase, market participants are focusing on signs of potential trend reversals. one Report Highlights from encryption show that real on-site demand has been declining, meaning that despite the price increases, continued momentum can be difficult unless demand returns.
Also, recently intotheblock reveal The surge in active Bitcoin addresses followed last week’s price decline. This increase suggests that on-chain activity is often seen during market transition periods. Whether this indicates a new accumulation stage or a sustained volatility remains to be seen.
The decline last week triggered a surge in active addresses, pushing the daily average to its highest level since December, when Bitcoin exceeded $100,000.
This rise in on-chain activity coincides with an increase in zero volume address, indicating a surrender. pic.twitter.com/eiesdiwern
– intotheblock (@intotheblock) March 4, 2025
Currently, supply trends, ETF inflows and Liquidity conditions It is worth monitoring to evaluate Bitcoin’s next move. If long-term holders re-enter the market and demand recovers, Bitcoin may see an upward momentum.
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However, before these conditions remain consistent, XBTManager recommends caution, especially for high-risk industries in the current environment.
Feature images created with DALL-E, charts for TradingView
