Recent on-chain data has revealed a notable divergence between Bitcoin’s long-term holders (LTHs) and short-term holders (STHs), reaching unprecedented levels.
This divergence underscores the varying strategies and behaviors of different segments of the cryptocurrency market.
In an analysis shared on X, an analyst highlighted the widening gap between two significant cohorts in the Bitcoin market: short-term holders (STHs) and long-term holders (LTHs).
Understanding these distinctions is crucial for gaining insights into market dynamics.
Short-term holders, or STHs, are investors who acquired their Bitcoin holdings within the past 155 days. On the other hand, long-term holders, or LTHs, consist of individuals who have maintained their Bitcoin positions beyond this 155-day threshold.
Historically, the length of time an investor holds onto their Bitcoin has been a key determinant of their trading behavior.
Generally, the longer an investor keeps their holdings dormant, the less likely they are to sell them in response to market fluctuations or external factors.
This characteristic often results in LTHs having stronger convictions in their investments compared to STHs.
LTHs have earned the moniker “diamond hands” for their steadfast commitment to holding through volatile market conditions.
They demonstrate resilience in the face of price fluctuations, maintaining their positions with a long-term perspective.
In contrast, STHs tend to be more reactive, selling their holdings when fear, uncertainty, and doubt (FUD) surface in the cryptocurrency sector or when profitable selling opportunities arise.
I'm a crypto, blockchain, and tech writer. I spend my time researching and writing about cryptocurrency, NFT, AI, and new technology.
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