2-8-2025 – Bitcoin’s recent price decline was primarily driven by short-term investors, with Glassnode data indicating that 85.5% of on-chain spending in the past 24 hours came from wallets holding BTC for a short period, as first reported by BlockBeats.
Between July 31 and August 1, short-term holders (STHs) moved $18.24 billion worth of Bitcoin, dwarfing the $3.1 billion transferred by long-term holders (LTHs), who accounted for just 14.5% of the $21.34 billion total. The heavy selling from STHs suggests newer investors are either locking in profits or exiting positions amid market volatility. This pattern aligns with previous corrections where short-term holders react swiftly to price swings, while long-term holders maintain their positions.
Analysts view the resilience of LTHs as a positive signal, noting that their stability during downturns often reflects strong underlying confidence in Bitcoin’s long-term value. Historically, such dynamics have preceded periods of price stabilization or recovery, as long-term holders absorb selling pressure from newer market entrants. However, the scale of STH activity underscores the market’s current sensitivity to short-term sentiment, particularly as macroeconomic factors like U.S. tariffs and geopolitical tensions add uncertainty.
