Long / Short-Term Holder Threshold.Long / Short-Term Holder Threshold.
Here’s how this metric works:
- 🔴 Short-Term Holders (STHs): coins that have been held for less than 155 days.
- 🔵 Long-Term Holders (LTHs): coins that have been held for more than 155 days.
- 🟥 Short-Term Holder Cost Basis: all coins purchased in this price range are STHs.
- 🟦 Long-Term Holder Cost Basis: all coins purchased in this price range are LTHs.
This metric is extremely powerful as we can see exactly what price STHs and LTHs purchased Bitcoin at.
The LTH / STH threshold is currently at 18th December 2023, back when Bitcoin was ~$42,600.
- All coins purchased before this date are classified as LTHs.
- All coins purchased after this date are classified as STHs.
Today there is currently 14,062,942 Bitcoin in the hands of LTHs. (71.38% of the circulating supply)
Whereas the amount of coins held by STHs is only 3,363,056. (17.07% of the circulating supply)
(Quick note, exchange balances aren’t counted in this metric)
During bull markets, the amount of long-term holders begins to decline.
This is due to long-term holders finally deciding to lock in profits.
As a result, the amount of short-term holders increases. (coins become “young” again as they change hands)
BUT, recently the amount of long-term holders has begun to increase…
This was likely due to Bitcoin’s recent sideways price action, every LTH that was set on taking profits at these levels already has.
However…However…
Now that Bitcoin has once again broke through $70,000, we may see some LTHs decide to take profits again.
Regardless, the amount of LTHs is still at an incredibly high level.