🚨 Short-Term Holders Are Not Accumulating Bitcoin! What Does This Mean? 🚨
According to Supply Age Bands, which categorizes Bitcoin supply by age, the Supply of Short-Term Holders (STH) up to 3 months is experiencing a sharp decline, indicating a reduced interest in accumulating/buying BTC. Historically, high values of this indicator have been observed during periods of euphoria and public interest, while low values have coincided with price corrections.
By analyzing the Supply up to 6 months, we can better understand the importance of Short-Term Holders to Bitcoin: when the supply increases, the price tends to rise; when it decreases, the price often follows. Tracking this behavior daily is crucial, as a continuous decline is not a good sign.
However, historical precedents show that even with a drop in STH Supply, Bitcoin can still reach new highs. In 2021, the STH Supply started declining in April, yet BTC hit new all-time highs in October and November. Similarly, in 2013, the supply rebounded within a few months, leading to new highs in the short term.
This suggests that, despite the current lack of interest from Short-Term Holders, we cannot rule out the possibility of new all-time highs for Bitcoin in 2025. We've discussed this scenario before, and if it materializes, it could take at least another 6 months.
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