The post Bitcoin’s Supply Dynamics Shift: Short-Term Holders Gain Ground Amid Renewed On-Chain Activity appeared on BitcoinEthereumNews.com.

Holder Type BTC Supply Change Long-Term Holders (LTH) 14.54 million BTC Declined Short-Term Holders (STH) 2.4 million BTC +7.96% What is Causing the Shift in Bitcoin’s Supply Dynamics? The recent changes in Bitcoin’s supply dynamics indicate a mid-cycle structural reset. Short-term holders are gaining ground as long-dormant coins are reactivated, reflecting a shift in market confidence. How Are Short-Term Holders Impacting the Market? Short-term holders are now controlling a significant portion of Bitcoin’s supply. This shift is notable as the average transaction size has increased, indicating that larger entities are re-entering the market. This trend is supported by data from CryptoQuant, which shows a surge in reactivated supply. Source: Glassnode As shown in the chart, BTC’s 30D SMA of new addresses has crossed above the 365D SMA for the first time in months. This crossover suggests renewed on-chain expansion, indicating a strong vote of confidence from retail and newer market entrants. Bitcoin’s Supply Map is Getting Redrawn CryptoQuant data confirms a notable structural rotation in dormant BTC supply. Bitcoin’s old supply is waking up fast, and in much bigger chunks. In 2023, only around 59k BTC from long-dormant wallets moved. But in 2024, that number exploded to 255k BTC, and 2025 is already at 214k BTC with months to go. What really stands out is the size of each move. Average transaction size ballooned from 162 BTC to 1,011 BTC, signaling these aren’t retail flows. It’s likely high-conviction entities rotating supply back into active circulation. Source: CryptoQuant Meanwhile, 2025’s average monthly reactivated supply sits at 30.7K BTC, marking a 6x jump Year-over-Year (YoY). Despite this supply-side activity, Bitcoin has rallied above $120K, highlighting strong underlying demand. Put simply, Bitcoin is redrawing its supply map in real time. Dormant capital is reawakening, short-term holders are gaining market share, and on-chain user…

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Filed under: News - @ August 6, 2025 2:22 am