Why Bitcoin Isn’t Experiencing an Explosive Surge? Analytics Company Reveals the Real Reason
Why doesn't the Bitcoin price show sudden increases like before? The analysis company shared the report containing its thoughts.
CryptoQuant, a leading market research firm, has detected a significant drop in the supply of short-term holders (STH) of Bitcoin (BTC), which it notes could pose an obstacle to the cryptocurrency’s price boom.
According to the company, the 30-day change in Bitcoin's STH supply has reached its lowest levels since 2012, indicating a major shift in market dynamics.
Bitcoin supply is increasingly shifting toward long-term holders (LTH), investors who typically accumulate Bitcoin and hold it for 155 days or longer. While this shift signals confidence in Bitcoin’s long-term value, the lack of activity from short-term holders may be suppressing the asset’s price momentum.
“Historically, Bitcoin has been rising to new highs as a result of new holders buying from long-term holders and driving up the price in the process,” said Julio Moreno, Director of Research at CryptoQuant. He explained that while the accumulation of LTHs is usually a prerequisite for future price appreciation, fresh demand from short-term holders is necessary to trigger a sustainable rally.
According to Moreno, “Bitcoin needs fresh demand from short-term holders to sustain a price rally. This is what happens during bull cycles.”
*This is not investment advice.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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