Bitcoin Short-Term Holders Makes A Notable Comeback As Supply See A Sharp Surge

Sentiment is starting to turn bullish once again toward Bitcoin, the largest crypto asset, as investors have gone on a buying spree following its renewed upward move to $88,000. Despite the recent volatility that hindered BTC’s bullish performance, short-term holders have shown a notable accumulation trend.

Rapid Rise In Bitcoin Short-Term Holders Supply

Several key developments in Bitcoin’s market dynamics point to rising confidence in the flagship asset’s future performance. Such optimism can fuel a rise in BTC’s price, as evidenced by its recent move to the $88,000 resistance level.

Following the upside move, Axel Adler Jr., a seasoned on-chain expert and macro-researcher, has identified a shift in investors’ behavior among Bitcoin short-term holders. In the post on the X (formerly Twitter), Axel Adler reported that the short-term holders are making a strong presence in the market again as their supply increases dramatically.

The advancement in short-term supply indicates heightened speculative activity by this cohort, with fresh investors purchasing BTC in spite of price fluctuations. It also implies a growing influence of short-term market players, which could impact BTC’s price dynamics in the near future.

On-chain data shared by the expert shows that the short-term holders have been increasing their supply since January 1, adding over 201,743 more BTC. As a result, their holdings now boast about 5,750,076 BTC, reflecting a strong supply base.

While their holding has increased significantly, it is still far less than in previous cycles. Axel Adler highlighted that short-term holders had more than 8.4 million BTC and 7 million at the peak of the previous cycles, respectively.

Essentially, around 200,000 BTC is presently sitting at an unrealized loss of over $17 billion at the current price of the asset. Thus far, market participants are closely observing whether the development will lead to significant sell pressure from these investors. However, after a thorough examination, the expert is confident that short-term holders are not in a hurry to sell their Bitcoin holdings.

Are Short-Term Holders Looking To Sell Their BTC?

Considering other key metrics like the BTC Short-Term Holders SOPR Indicator, there is a possibility that these investors could sell their coins. Axel Alder reveals that the metric has currently risen above 1.

This increase indicates that these investors typically classified as 155-day holders are likely to sell their BTC at a profit. Even though short-term holders will generate selling pressure, the expert believes that there will not be many sellers.

Presently, BTC is trading at $87,580, demonstrating a nearly 1% increase in the last 24 hours. Investors seem to be losing confidence in Bitcoin’s renewed bullish movements as its trading volume has declined by almost 13% in the past day.