Short-Term Holders (STHs) Continue Depositing Bitcoin to Exchanges

• “Short-term holders” (STHs) refer to investors who have held their Bitcoins for less than 155 days.
• Exchange inflows represent the total amount of Bitcoin deposited by STHs into centralized exchange wallets. When the value of this metric is high, it can indicate that these holders might be ready to sell a significant amount of Bitcoin.
• Looking at the graph, it can be observed that Bitcoin STH exchange inflows have recently increased. In the past 20 days, the inflow supply from these investors has been measured to be above 1%.

According to the latest data, Short-Term Holders (STHs) in Bitcoin have deposited a large amount of BTC to centralized exchanges in the past 20 days.

STHs Depositing BTC in High Amounts

According to on-chain analytics firm Glassnode’s data, short-term Bitcoin investors have sent 617,000 BTC to exchanges in the past 20 days. “Short-term holders” (STHs) refer to investors who have held their Bitcoins for less than 155 days.

STHs are typically considered weak hands in the market and can easily sell during a widespread FUD period or sharp price increase in the cryptocurrency. These investors often utilize exchanges to execute such sales, so the data on “exchange inflows” can provide insights into their current behavior.

Here, exchange inflows represent the total amount of Bitcoin deposited by STHs into centralized exchange wallets. When the value of this metric is high, it can indicate that these holders might be ready to sell a significant amount of Bitcoin. Naturally, such a trend can have a downward pressure on the asset’s price.

A graph illustrating the trend of Bitcoin STH exchange inflows over the past year:

Here, Bitcoin STH exchange inflows are represented as a percentage of supply. Considering the supply of these investors can vary, it makes more sense to consider percentages for historical comparisons (as opposed to absolute numbers, which can be inconsistent).

Looking at the graph, it can be observed that Bitcoin STH exchange inflows have recently increased. In the past 20 days, the inflow supply from these investors has been measured to be above 1%.

During this period, this group has deposited approximately 617,000 BTC to these platforms, which is a significant amount.

1% Threshold Was Surpassed in Critical Events such as the FTX Crash

Glassnode has also highlighted previous instances where the indicator surpassed the same 1% threshold at the end of last year. Three crash events – the LUNA crash, 3AC bankruptcy, and FTX crash – seemed to exhibit larger peaks than the current levels.

However, despite the high selling pressure from this group, the cryptocurrency’s price has held strong so far, as it continues to move above the $30,000 level.