Is Bitcoin Transitioning To A Bear Market? This Metric May Suggest So
The Bitcoin Long/Short-Term Holder Supply Ratio has recently spiked, indicating a potential transition towards a bear market. Short-Term Holders (STHs) are defined as those who purchased Bitcoin within the last 155 days, while Long-Term Holders (LTHs) have held their coins longer. Historically, LTHs are less likely to sell, but recent price rallies have prompted some to do so. The ratio had previously declined during the 2017 and 2021 bull runs, reflecting LTHs selling to new investors. Currently, the ratio is rebounding, suggesting STHs are maturing into LTHs, indicating a return of HODLing conviction. However, this trend often precedes bear markets, raising uncertainty about Bitcoin's future direction. Bitcoin is currently trading around $56,700.
