Summary
TLDR: Short-term holders of Bitcoin (STH) join the market during a bull market for quick profits but quickly lose ground if prices correct. Monitoring STH behavior is crucial for maintaining a healthy bull market. Nearly 50% of Bitcoin’s realized capitalization is in the hands of STH, indicating bullish sentiment. Key support for Bitcoin is at $55,000, with potential for a 25% drop if correction occurs. Deep declines could lead to a medium-term bear market.
Key Points
1. An accelerating bull market usually correlates with an increasing influx of new investors, specifically short-term holders of Bitcoin (STH) who join the market during the booming bull market driven by the desire for quick profit.
2. The behavior and presence of STH in the market are crucial to maintaining a healthy bull market, as the increase in the percentage of BTC supply held by STHs is inversely proportional to the percentage held by long-term hodlers (LTHs), impacting the price of Bitcoin.
3. Short-term holders currently account for nearly 50% of Bitcoin’s realized capitalization, reflecting a high bullish sentiment among this group and suggesting a potential increase in the price of BTC in the current cycle.