CryptoQuant: Bitcoin's Short-Term Holders Continue to Decline, Long-Term Holders Tend to Accumulate

ChainCatcher has learned that the number of short-term bitcoin holders (those who have held the currency for no more than 155 days) has continued to fall since the end of May, indicating that demand is weakening, according to new research from crypto data analytics platform CryptoQuant. According to Julio Moreno, head of research at CryptoQuant, this phenomenon means that demand for bitcoin remains weak. In contrast, long-term holders appear to be taking advantage of the opportunity to accumulate, Moreno added, adding that if demand for bitcoin grows again, this dynamic could reverse, causing short-term holders to buy from long-term holders.

CryptoQuant contributor IT Tech believes that this dynamic could lead to medium-term price appreciation and market stability. Increased accumulation by long-term holders could lead to price stabilisation and set the stage for a potential market rally, while selling by short-term holders could put downward pressure on the Bitcoin price in the short term.IT Tech says the data shows a clear flow of funds from the weaker group (short-term holders) to the stronger group (long-term holders), which bodes well for market stability.