{"id":1626779,"date":"2022-08-16T01:46:15","date_gmt":"2022-08-16T05:46:15","guid":{"rendered":"https:\/\/wordpress-1016567-4521551.cloudwaysapps.com\/?post_type=station&p=1626779"},"modified":"2022-08-17T00:01:50","modified_gmt":"2022-08-17T04:01:50","slug":"expansion-of-short-term-btc-holders-suggests-final-flush-of-sellers","status":"publish","type":"station","link":"https:\/\/platodata.io\/plato-data\/expansion-of-short-term-btc-holders-suggests-final-flush-of-sellers\/","title":{"rendered":"Expansion of short-term BTC holders suggests \u2018final flush\u2019 of sellers"},"content":{"rendered":"
A recent spike in short-term Bitcoin (BTC<\/a>) holders could signal a \u201cfinal flush\u201d of sellers, meaning the capitulation events have played out, leaving the market ready for months of accumulation. <\/p>\n The latest \u201cThe Week On Chain\u201d report from market analysis firm Glassnode on Monday points out<\/a> that short-term holders (STHs) have expanded their holdings by 330,000 BTC since May\u2019s catastrophic Terra collapse<\/a>. As a result, they may be the canary in the coal mine signaling the path to market recovery.<\/p>\n During the mass sell-offs starting in May through June, Short-term holders of Bitcoin<\/a> established a new trend by buying up extremely cheap coins at or below $20,000 which puts them in an \u201cadvantageous financial position.\u201d<\/p>\n After a dramatic capitulation event, the ownership structure of #Bitcoin<\/a> has been reshaped.<\/p>\n As markets sell-off, $BTC<\/a> migrates from weaker hands, to those stepping in at the lows. Here, we explore how to track this migration of coins using age bands.https:\/\/t.co\/xBxdvALRmZ<\/a><\/p>\n \u2014 glassnode (@glassnode) August 15, 2022<\/a><\/p><\/blockquote>\n The report states that an outflow of about 200,000 coins from long-term holders (LTHs) and exchange net outflows since May appear to have been the main contributors to the swelling STH supply. Altogether, these events indicate that a capitulation<\/a> has occurred and that STHs \u201cstepped in during the flush out, and now own coins with a much lower cost basis.\u201d<\/p>\n STHs are defined as wallets that have held BTC for no more than 154 days. They become LTH at 155 days.<\/p>\n\n
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