How Bitcoin’s short-term holders can push BTC past $100,000
The post How Bitcoin’s short-term holders can push BTC past $100,000 appeared on BitcoinEthereumNews.com.
Declining short-term holder (STH) profits could have a positive impact on BTC’s price. Lower selling incentives and increasing stablecoin inflows into the crypto market could contribute to BTC’s rally. After briefly reaching the $100,000 region on the 7th of February, Bitcoin [BTC] has struggled to sustain that level, currently trading at $95,811.80, down 2.65% in the past 24 hours. However, as profit margins remain low for short-term holders, they have fewer reasons to sell, which could exert upward pressure on BTC’s price. Market reset signals potential upside According to Glassnode’s Bitcoin Short-Term Holders Profit/Loss Ratio, the market appears to have reset, with the ratio currently at 1.08. Short-term holders are addresses that held BTC for less than 155 days before selling. A ratio of 1.08 suggests that STHs are in slight profit, as it is only marginally above 1. For every $1.08 of BTC sold at a profit, $1 is sold at a loss. Source: Glassnode This ratio has dropped below its 90-day average, indicating the market is shifting toward a more neutral position as realized profits decline. AMBCrypto noted that with BTC trading around $95,000 and the market in a reset phase, a significant breakout from this level could follow. Declining profits could trigger a supply squeeze The Market Value to Realized Value (MVRV) ratio for short-term BTC holders has also declined below its 90-day average. This aligned with broader market conditions. Source: Glassnode At the time of writing, the STH-MVRV stood at 1.05, meaning BTC’s current price is only slightly above the average purchase price of short-term holders. AMBCrypto observed that such declines typically reduce selling pressure from this cohort, as they anticipate higher prices before exiting. Glassnode’s data on realized profit-taking supports this trend, showing a decline in BTC distribution among short-term holders. This shift in behavior…
Filed under: News - @ February 12, 2025 9:25 pm