Written by Hazel J. Greene, Senior Analyst

On-chain data reveals an interesting trend in the Bitcoin market, with short-term holders (STHs) taking the lead in contributing to exchange inflows.

According to a recent report from Glassnode, STHs have been actively making inflows into exchanges since February of this year. Short-term holders are defined as investors who have held their coins for less than 155 days, making them a vital cohort alongside long-term holders (LTHs).

As statistical analysis suggests, the longer investors hold their coins, the less willing they become to sell. Given that LTHs have held onto their Bitcoin for a longer period, they are more likely to weather market disturbances or profit-taking opportunities.

A useful indicator for estimating selling pressure is the “exchange inflow,” which measures the total amount of BTC transferred to centralized exchanges by holders. Typically, holders use these platforms for selling, providing insights into their participation in current market activities.

Analysis of Bitcoin exchange inflow volumes reveals that STHs account for a significant portion of the total. Out of the current 39,600 BTC in exchange inflows, approximately 31,100 BTC are from STHs, representing around 78% of the overall estimate.

The limited contribution from LTHs and the majority being covered by inter-exchange transfers indicate the strong resolve of STHs. Despite recent price rallies, the low inflows from this cohort suggest their willingness to sell, potentially driven by the substantial profits they are currently holding.

Examining the profitability of STHs reveals that nearly all of these investors are currently holding Bitcoin at a profit. This aligns with historical patterns, as previous rallies have seen STHs enter profitable territory for a certain period.

Presently, Bitcoin is trading at approximately $29,800, experiencing a 2% decline in the past week.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.