Short-term Bitcoin investors have contributed to the bear market, but these investors generally do not hold their tokens for a long time as they pursue quick profits. If the Bitcoin price recovers from recent corrections, these investors may suffer losses in the market. However, the actions of short-term investors and the percentage of tokens they hold are crucial for the continuation of a healthy bear market.
Interaction between STH and LTH
The relationship between short-term (STH) and long-term (LTH) Bitcoin holders can be decisive for the Bitcoin price. STHs are generally defined as addresses that hold their Bitcoins for less than 155 days, while addresses holding for more than this period are included in the LTH category. The amount of tokens held by long-term investors often shows an inverse relationship with the Bitcoin price. As the sales of LTHs increase, the BTC price also rises.
Experts point out that the increase in the amount of Bitcoin held by short-term investors is generally directly proportional to the Bitcoin price. This attracts the attention of new investors and analysts who want to join the rising trend, which can support the momentum of the bear market.
STH Movements on the Chain
Monitoring the movements of short-term investors on the chain is an important indicator for the future of the Bitcoin market. According to the analyst firm CryptoQuant, nearly half of Bitcoin’s current capital is held by short-term investors. There has been an increase in STH purchases in the last 30 days, indicating increased excitement in the market. If Bitcoin’s price correction continues, analysts predict that BTC could reach $55,000, which represents a decrease of approximately 25% from its all-time high.
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