According to CoinDesk, short-term bitcoin (BTC) holders have significantly increased their holdings, adding 1.5 million BTC since September. This brings the total to over 4 million BTC, with an average monthly accumulation of approximately 300,000 BTC. During this period, bitcoin's price experienced a notable surge from $60,000 to $109,000 before retreating below $100,000. Glassnode defines short-term holders as those who have held bitcoin for less than 155 days.
Historically, bitcoin's price tends to reach its peak when short-term holders exhaust their buying momentum, leading to a slowdown in price appreciation. This pattern has been observed in previous bull market cycles, notably in 2013, 2017, and 2021. During these cycles, short-term holders held significantly more bitcoin at the peaks: 5 million BTC in 2013, 6.2 million BTC in 2017, and 4.6 million BTC in 2021. In comparison, the current holdings of 4 million BTC are relatively low, suggesting that new market entrants may continue to accumulate, indicating potential for further growth in the cycle.
Meanwhile, long-term holders, defined as investors who have held bitcoin for more than 155 days, have distributed 1.2 million BTC during the same period. This distribution reflects significant profit-taking following bitcoin's strong rally since November. The ongoing offloading by long-term holders has been a major factor contributing to bitcoin's stalled price action since mid-November.