Bitcoin short-term holders (STHs) are showing a strong inclination to sell their BTC holdings as the price reaches $30,000, according to data from on-chain analytics firm Glassnode. The research, released on June 28, highlights a significant increase in the number of coins being sent to exchanges.
The stalling of BTC price at $30,000 has prompted short-term holders to reconsider their positions and take profits. STHs are entities that hold their funds for 155 days or less, and they are becoming increasingly eager to sell. Glassnode’s analysis of inflows to exchange wallets reveals a notable spike in funds from STHs, who are typically more speculative in their investment approach.
Glassnode commented, “The recent elation in Bitcoin price action has enticed an increase in Short-Term Holder interaction with exchanges.” The data shows that 1.28% (35.4K BTC) of the STH supply has been sent to exchanges, indicating intensified selling activity among this group.
A chart provided by Glassnode clearly distinguishes between inflows during the current period and those observed during the 2022 bear market. During price suppression periods, STHs are more inclined to sell their holdings in order to limit losses. However, during periods of price surges, such as the current one and in March when BTC/USD returned to $30,000, overall exchange volumes tend to be lower due to profit-taking.
The data suggests that speculative interest in Bitcoin remains highly sensitive to even small price movements. Despite this, STHs have become a significant force in the market this year. As Glassnode and Cointelegraph previously noted, their aggregate cost basis, which was around $26,500 earlier this month, has served as a support level.
On-chain analysis has also predicted that if the BTC price continues to rise, the urge for STHs to take profits could become overwhelming. Historical data shows that once STH profitability reaches an aggregate of 20%, selling tends to begin. Considering their current breakeven point of $26,500, any price above $33,000 could trigger a significant shift in the composition of BTC holders.
Currently, STH profitability is at around 10%, with the realized price of STH coins (the price at which they last moved) now above $27,000. This signifies that STHs have already realized some gains but may still be looking to sell if the price continues to rise.
It is important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risks, and readers should conduct their own research before making any decisions.
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