Short-term holders (STH) have added around 450,000 BTC to their supply since July, now holding around 2.6 million BTC according to Glassnode data.
STHs are defined as investors who have purchased Bitcoin in the last 155 days.
This increase marks the third distinct cycle of increased STH activity since the start of 2024 and generally marks a local high for the price of Bitcoin.
The first peak occurred in April 2024, shortly after bitcoin’s March all-time high of $73,000.
The second peak occurred in January 2025, aligning with the all-time high of $110,000, and the latest so far, the third peak followed a new all-time high of $126,000.
Each successive cycle has seen a smaller STH cohort, suggesting that overall market euphoria and speculative behavior are gradually fading.
During these three peaks, STH supply as a percentage of total circulating supply decreased from 22% to 20%, and now sits at around 18%, according to Glassnode data.
Earlier in Q1 2025, STHs held up to 2.8 million BTC, but their supply fell to around 2.1 million BTC as bitcoin fell to $76,000. This indicates that STHs were one of the main drivers of the selling pressure seen in April.
In contrast, long-term holders (the inverse of STH) began reducing their position over the summer months, distributing around 250,000 BTC since July as Bitcoin consolidated, now holding 14.5 million BTC.
As Bitcoin enters its historically strongest period of the quarter, the supply of STH is expected to continue to increase and reach new cycle highs at over 3 million BTC.
