In recent weeks, there has been an interesting dynamic in the #cryptocurrencymarket : short-term #bitcoin☀️ holders have started to dominate in terms of profitability. According to the latest data from analytics platform #Glassnode , their Short-Term Holder Profit/Loss Ratio index has reached 1.2, exceeding the average value by one standardized value. This may indicate a positive shift in investor sentiment, which is especially important during times of market volatility.
A sharp rise in the index often indicates a return of optimism among short-term holders looking to profit from higher prices. Historically, such short-term profit spikes often serve as an indicator of potential market rallies. However, it is important to note that previous data shows mixed results, as the activity of short-term holders can also signal potential corrections.
The situation on the chart sets the stage for further gains as short-term investors continue to show interest in holding positions even with the current volatility. However, the current economic context and factors such as monetary policy tightening could make further adjustments.
The researchers noted that a similar dynamic was observed at the end of previous bull cycles, when short-term holders' activity was accompanied by increased demand for $BTC
bitcoin. However, the growth in short-term profitability this year is more moderate compared to previous cycles. This can be attributed to lower global cash flows and less interest in risky assets.
Another important factor has been the changing strategy of #Bitcoin❗ holders. Some large investors prefer to preserve their holdings, expecting bitcoin to increase in value in the future. While short-term holders are locking in profits.
