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Bitcoin

88.3% Short-Term BTC Holders In Floating Loss, STH Indicator At Record Low

August 21, 2023 - Around 2 mins mins to read

Key Points:

  • Glassnode analyst Checkmatey tweeted that 88.3% of short-term BTC holders are in a floating loss.
  • Of the 2.56 million BTC they hold, only 300,000 BTC are profitable.
  • The indicator Short-term Holders (STH) is effectively at all-time lows, with fewer than 27 trading days (0.57%) recording a lower value.
Glassnode analyst Checkmatey tweeted that 88.3% of short-term BTC holders are in floating losses. Of the 2.56 million BTC they hold, only 300,000 BTC are profitable.

Short-term Holders (STH), a technical indicator showing potential market pressure, is now at an all-time low, with less than 27 trading days (0.57%) recording prices’ lower value.

88.3% Short-Term BTC Holders In Floating Loss, STH Indicator At Record Low
Source: Glassnode

This suggests that all investors looking to take profits or losses in this price zone have now done so, and the market must move to spur fresh spending (i.e., an indicator for volatility). This pattern indicates that the market may change dramatically, either up or down.

Short-Term Holders are newer market entrants, active traders, and “weak hands” more likely to exit positions in response to market volatility. Coins younger than 155 days are statistically more likely to be re-spent and thus are considered a more liquid and active portion of the supply.

Glassnode’s previous analysis also said Assets held by the STH pool have increased by over $22 billion this year, while the LTH pool has seen a comparable drop of $21 billion.

This reflects two mechanisms, short-term holders chasing the market higher, creating a high-average cost base, and the supply that was acquired at a price below $24,000 in Q1 that has moved to a higher-than-average state. LTH state, resulting in a reduced average cost base.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Bitcoin, Analysis

88.3% Short-Term BTC Holders In Floating Loss, STH Indicator At Record Low

Key Points:

  • Glassnode analyst Checkmatey tweeted that 88.3% of short-term BTC holders are in a floating loss.
  • Of the 2.56 million BTC they hold, only 300,000 BTC are profitable.
  • The indicator Short-term Holders (STH) is effectively at all-time lows, with fewer than 27 trading days (0.57%) recording a lower value.
Glassnode analyst Checkmatey tweeted that 88.3% of short-term BTC holders are in floating losses. Of the 2.56 million BTC they hold, only 300,000 BTC are profitable.

Short-term Holders (STH), a technical indicator showing potential market pressure, is now at an all-time low, with less than 27 trading days (0.57%) recording prices’ lower value.

88.3% Short-Term BTC Holders In Floating Loss, STH Indicator At Record Low
Source: Glassnode

This suggests that all investors looking to take profits or losses in this price zone have now done so, and the market must move to spur fresh spending (i.e., an indicator for volatility). This pattern indicates that the market may change dramatically, either up or down.

Short-Term Holders are newer market entrants, active traders, and “weak hands” more likely to exit positions in response to market volatility. Coins younger than 155 days are statistically more likely to be re-spent and thus are considered a more liquid and active portion of the supply.

Glassnode’s previous analysis also said Assets held by the STH pool have increased by over $22 billion this year, while the LTH pool has seen a comparable drop of $21 billion.

This reflects two mechanisms, short-term holders chasing the market higher, creating a high-average cost base, and the supply that was acquired at a price below $24,000 in Q1 that has moved to a higher-than-average state. LTH state, resulting in a reduced average cost base.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.