Bitcoin

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Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) speculators have net distributed more than 21,000 BTC over the past month in an exit which rivals records, data shows.
In a <a href="https://cryptoquant.com/insights/quicktake/66df293f6884f07ba42b9173-Shifting-Hands-Capital-Flowing-from-Weak-to-Strong-Holders-Short-Term-vs-Long-Te" rel="noopener noreferrer nofollow" target="_blank">Quicktake blog post</a> on Sept. 9, onchain analytics platform CryptoQuant revealed capital “flowing” to long–term holders.
<h2 id="bitcoin-s-diamond-hands-go-on-accumulation-spree">Bitcoin's "diamond hands" go on accumulation spree</h2>
BTC price performance in recent weeks has led to a collapse in faith among its newer hodler cohorts.
According to CryptoQuant, which tracks the 30-day net position change among both short-term (STHs) and long-term holders (LTHs), the former reduced its holdings by 21,600 BTC over the 30 days through Sept. 8.
“The last two weeks show a significant decline in STH net positions, indicating that short-term investors are selling their holdings in response to recent market volatility,” contributor IT Tech wrote.
IT Tech named the net position decrease as one of “several key trends” currently in play among STHs, the name given to entities holding a given amount of BTC for 155 days or less. Others, they said, are “exiting the market” and “risk reduction.”
The data stands out as a rare episode in the history of STH monitoring. Such a large 30-decrease has not occurred since mid-2021.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-09/bb3c5a64-8684-46cf-829d-89d2aa7284db.png" alt="Bitcoin speculators repeat 2021 de-risking as exposure drops 21.6K BTC">
 <figcaption style="text-align: center;">
 Bitcoin STH 30-day net position change. Source: CryptoQuant
 </figcaption>
</figure>
For LTHs, meanwhile, the picture is decidedly different — accumulation is in full swing, with the cohort’s 30-day net position increase totaling 22,000 BTC.
This roughly equals the STH position drawdown, and is also the largest increase in several years.
“Increased accumulation by LTH could lead to price stabilization and position the market for a potential rebound, while STH sell-offs may create short-term downward pressure on BTC prices,” IT Tech concludes.
<blockquote>
 “The data shows a clear capital flow from weak hands (STH) to strong hands (LTH), signaling a market stability.”
</blockquote>
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-09/be9007a8-4b9b-4ac5-9016-125c8b6141a7.png" alt="Bitcoin speculators repeat 2021 de-risking as exposure drops 21.6K BTC">
 <figcaption style="text-align: center;">
 Bitcoin LTH 30-day net position change. Source: CryptoQuant
 </figcaption>
</figure>
<h2 id="btc-goes-from-weak-to-strong-hands">BTC goes from weak to strong hands</h2>
Cointelegraph often reports on the changing dynamics between Bitcoin hodler cohorts.
Related: <a href="https://cointelegraph.com/news/is-crypto-entering-a-bear-market-5-things-bitcoin-this-week">Is crypto entering a bear market? — 5 Things to know in Bitcoin this week</a>
STH entities’ <a href="https://cointelegraph.com/news/bitcoin-investors-relatively-profitable-even-as-the-bull-market-takes-a-pause">aggregate cost basis</a>, for example, regularly functions as long-term support during bull markets.
Recently, that trend line, which currently sits around $64,000, has been unreliable, and reflects significant unrealized losses persisting among STHs.
STHs now own just under 18% of the available BTC supply, CryptoQuant calculates.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-09/72773084-4e07-4616-af39-6dc59497240c.png" alt="Bitcoin speculators repeat 2021 de-risking as exposure drops 21.6K BTC">
 <figcaption style="text-align: center;">
 Bitcoin STH vs. LTH supply. Source: CryptoQuant
 </figcaption>
</figure>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin speculators repeat 2021 de-risking as exposure drops 21.6K BTC

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