Bitcoin’s supply dynamics are undergoing a significant shift, with short-term holders increasing their share as dormant coins reactivate, indicating a mid-cycle structural reset.
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Short-term holders (STH) now control 2.4 million BTC, reflecting a 7.96% increase.
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Long-term holder (LTH) supply has dropped to 14.54 million BTC, marking a monthly low.
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New address momentum is rising, signaling renewed on-chain activity.
Bitcoin’s supply dynamics are shifting as short-term holders gain ground, with dormant coins reactivating at scale. Discover the implications for the market.
| Holder Type | BTC Supply | Change |
|---|---|---|
| Long-Term Holders (LTH) | 14.54 million BTC | Declined |
| Short-Term Holders (STH) | 2.4 million BTC | +7.96% |
What is Causing the Shift in Bitcoin’s Supply Dynamics?
The recent changes in Bitcoin’s supply dynamics indicate a mid-cycle structural reset. Short-term holders are gaining ground as long-dormant coins are reactivated, reflecting a shift in market confidence.
How Are Short-Term Holders Impacting the Market?
Short-term holders are now controlling a significant portion of Bitcoin’s supply. This shift is notable as the average transaction size has increased, indicating that larger entities are re-entering the market. This trend is supported by data from CryptoQuant, which shows a surge in reactivated supply.
Source: Glassnode
As shown in the chart, BTC’s 30D SMA of new addresses has crossed above the 365D SMA for the first time in months. This crossover suggests renewed on-chain expansion, indicating a strong vote of confidence from retail and newer market entrants.
Bitcoin’s Supply Map is Getting Redrawn
CryptoQuant data confirms a notable structural rotation in dormant BTC supply. Bitcoin’s old supply is waking up fast, and in much bigger chunks.
In 2023, only around 59k BTC from long-dormant wallets moved. But in 2024, that number exploded to 255k BTC, and 2025 is already at 214k BTC with months to go.
What really stands out is the size of each move. Average transaction size ballooned from 162 BTC to 1,011 BTC, signaling these aren’t retail flows. It’s likely high-conviction entities rotating supply back into active circulation.
Source: CryptoQuant
Meanwhile, 2025’s average monthly reactivated supply sits at 30.7K BTC, marking a 6x jump Year-over-Year (YoY). Despite this supply-side activity, Bitcoin has rallied above $120K, highlighting strong underlying demand.
Put simply, Bitcoin is redrawing its supply map in real time. Dormant capital is reawakening, short-term holders are gaining market share, and on-chain user growth is accelerating. These are signs of a mid-cycle structural reset.
Key Takeaways
- Bitcoin is undergoing a mid-cycle supply rotation. Short-term holders are gaining ground as long-dormant coins reactivate at scale.
- Long-Term Holder (LTH) supply has declined to 14.54 million BTC, marking a monthly low.
- New address momentum is ticking higher, indicating renewed on-chain activity.
Conclusion
In summary, Bitcoin’s supply dynamics are shifting significantly, with short-term holders gaining market share and dormant coins reactivating. This mid-cycle structural reset could position Bitcoin for its next major leg up, as market confidence continues to grow.
