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Data on the blockchain indicates that Bitcoin short-term holders have recently made significant deposits to exchanges, suggesting that profit-taking may be in progress.
Surge in Bitcoin Short-Term Holder Exchange Inflows
In a recent update on X, CryptoQuant analyst Maartunn discussed the emerging trend of deposits from Bitcoin short-term holders to centralized exchanges.
The term “short-term holders” (STHs) refers to Bitcoin investors who acquired their coins within the last 155 days. This group represents one of two primary classifications of Bitcoin holders based on their holding duration, with the other being “long-term holders” (LTHs).
Historically, the STHs are identified as the more anxious players in the market, often selling during periods of volatility, whereas the LTHs are considered the steadfast investors.
Recently, Bitcoin experienced a significant price surge, surpassing the $122,000 mark. Given the tendencies of STHs, it is expected that they may seek to capitalize on their gains.
For LTHs, monitoring sales is relatively straightforward, as any time a member of this group sells, their coins exit the LTH collective and rejoin the STHs, resetting their age counter to zero. However, tracking STH activity is more complex since their coins are constantly shifting within this group.
One effective method to observe STH selling behavior is through their transactions to exchanges. Generally, investors utilize these centralized platforms for trading, so an uptick in deposits could signal a willingness to sell the cryptocurrency.
Below is the chart shared by Maartunn illustrating the trend of exchange inflows from Bitcoin STHs.
The graph clearly shows that Bitcoin STH deposits to exchanges have surged alongside the recent price increase. Notably, the inflows observed were purely profit-related, with no loss deposits registered. This suggests that those who purchased during the price all-time high (ATH) are maintaining their positions through this upward movement.
In total, STHs transferred 46,276 BTC within a 24-hour period during this latest surge, equivalent to approximately $5.7 billion at current exchange rates. The analyst highlights this as one of the most significant spikes in recent memory.
It remains to be seen whether sufficient demand will be present to absorb this selling pressure, or if profit-taking will hinder the Bitcoin rally.
BTC Price
At the time of writing, Bitcoin is trading around $122,700, reflecting an increase of over 11% in the past week.
