Bitcoin has just experienced a decline of ~15%, from ~$88,000 to ~$74,400. But the real story lies in the behavior of different market groups.

🔍 On-Chain Observation

April 7th is a crucial moment:

- Short-term holders (STH) suffered losses of over $10.1 billion— the largest market cap drop in a single day.

- Long-term holders (LTH) increased their market cap by $9.7 billion, indicating significant accumulation.

📊 This is not coincidental: the market is transferring money from weak hands to strong hands.

April 8th continues the story:

- STH losses decreased significantly (–$693 million), showing exhaustion in the sell-off.

- LTH continued to accumulate, adding $1.13 billion to their cost basis—even as prices remained flat.

🧠 Interpretation

The difference between STH and LTH is quite striking:

- Short-term investors are leaving in panic: cutting losses.

- Long-term investors are stepping in with confidence: buying when prices are weak.

This behavior often marks the end of a correction or the beginning of a recovery.

📐 Impact on Market Structure

- STH reduces supply: decreases short-term resistance.

- LTH reinforces holdings: a sign of belief in long-term potential.

The market is likely entering a phase of re-accumulation or bottom formation, rather than prolonged distribution.

🧭 Strategy

April 7, 2025 may be remembered as a structural turning point. The level of losses for STH—along with the absorption by LTH—has all the signs of a bottom being formed.