Short-Term Holders Expand Their Bitcoin Holdings, Sell-Offs Begin

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Today, the overall crypto market has plunged by 0.05% over the last 24hrs and is now positioned at $1.15 trillion. 

This has left the crypto market with mixed signals as Bitcoin, Solana, Polkadot, and MATIC, among others, are trading in red, Ethereum, Cardano, XRP, Dogecoin and others are on a bull run.

It is also important to know that there has been an increase in short-term BTC holders which might be indicating a huge drive of sellers. This means that the capitulation has found its end and the accumulation period has begun.

According to reports of Glassnode’s The Week On Chain published on August 15, short-term holders (STHs) have increased their holdings by 330,000 BTC. This spike has come now, after Terra (LUNA) collapsed in May, indicating market recovery.

From May to June, there have been huge sell-offs which suggests there is a start of a new trend by Bitcoin’s (BTC) Short-term holders as they begin to accumulate less expensive coins that are below $20,000. This creates a favorable position for these short-term holders.

2 Lakh Coins Transferred From Long-Term Holders

According to research, the major causes behind the rising STH supply seem to be a transfer of about 200,000 coins from long-term holders (LTHs) and an exchange of total withdrawals since May.

All these incidents point out that the capitulation has started and STHs now have those currencies that are much lower in cost.

STHs are accounts that have only stored BTC for 154 days. At 155 days, they are LTH.

Usually, STHs accumulate currencies when they are near or at their all-time highs and sell when they plunge because aggressive STH accumulation is typically associated with the bull market peaking patterns.

Glassnode, on the other hand, noted that purchases from May and June generated a “positive difference” in resisting that pattern.

According to Glassnode, the following part of a market reversal that experts must consider is that the new STHs from May and June “possess the confidence to stick around” and assists towards additional price hikes.