The recent price surge of Bitcoin has reached a critical on-chain threshold: Short-Term Holders (STH) have begun to distribute instead of accumulate their Bitcoins.

This shift marks a potential key moment in the current cycle. Despite strong price momentum, many recent buyers are choosing to take profits rather than increase their holdings further. Although STH are now diversifying their funds, historical signals also point to the later stages of a bull market cycle. However, it is essential to remember that even with similar distribution behavior, Bitcoin reached an all-time high in 2021. Therefore, although current signals suggest the market is in a cooling phase, there may still be upward potential.

Short-term holders are cashing out, and the market may be approaching the later stages of this cycle. However, long-term holders remain steady, and macro indicators also suggest an eventual upward trend.