- Compared to the catastrophic incidents of 2022, the short-term supply of BTC sent to exchanges remained low.
- Most investors in this cohort sold at a loss on average.
The ongoing chaos in the market caused by actions by US regulators has had a significant impact on Bitcoin’s performance [BTC] and other altcoins, with FUD becoming the order of the day.
How much are 1,10,100 XRPs worth today?
In general, periods like this test the resilience of short-term holders (STH) who are the first to jump ship in response to market swings. While this was true to some extent, the bigger picture told a different story.
According to on-chain analytics company Glassnode, the percentage of STH supply sent to exchanges has steadily increased over the past week to 0.82%. This indicated their willingness to redeem their tokens.
However, as shown in the chart below, this remained less compared to the influx observed immediately after Terra’s collapse [LUNA] in May and the bankruptcy of crypto exchange FTX in November, the two market implosions in 2022.
Source: Glassnode
Is June the trend?
Short-term holders are those participants who hold coins for less than 155 days, according to Glassnode. During the low volatility phase in May, STHs actively sold off their tokens, as evidenced by the sharp drop in supply between 3 and 6 months.
In early June, however, there was a slight increase in hodling activity for this age group, lending credence to the previously made deductions.
Source: Glassnode
Short-term shareholder confidence reflected the positive trend in the market. However, most investors in this cohort sold at a loss on average.
According to CryptoQuant, the Short Term Holder SOPR has been less than 1 since the FUD that emerged at the beginning of the week.
Source: CryptoQuant
What is the trigger for Bitcoin?
At the time of writing this article, Bitcoin was trading at $26,551.61, down 3% on a weekly basis (WTD), according to CoinMarketCap. The market mood balanced between greed and fear.
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So STHs could continue to hold coins in the short term.
However, a macroeconomic trigger or other unforeseen events could invalidate this story. The upcoming Federal Reserve meeting could be one of those. So many analysts have been anticipating a rate hike of 25 basis points.
Bitcoin Fear and Greed Index is 50. Neutral
Current price: $26,574 pic.twitter.com/EB0zg7ln35— Bitcoin Fear and Greed Index (@BitcoinFear) June 8, 2023