Bitcoin’s supply distribution is undergoing a significant change, characterized by an increasing influence from short-term traders and a corresponding decline among long-term holders. This shift reflects evolving market sentiment and behavior patterns.
Current data reveals a 7.96% increase in the supply controlled by short-term holders (STH), now totaling 2.4 million BTC. Conversely, the supply held steadfastly by long-term investors (LTH) has diminished, reaching a monthly low of 14.54 million BTC.
Further signaling substantial activity shifts, the average size of reactivated Bitcoin transactions has surged dramatically, climbing from approximately 162 BTC to an average of 1,011 BTC per transfer in 2024. This indicates large-scale movements of previously dormant coins.
The scale of dormant Bitcoin being reactivated has also escalated significantly, with transactions involving vintage holdings reaching 255,000 BTC so far in 2024. This figure starkly exceeds the 59,000 BTC reactivated throughout 2023.
Remarkably, Bitcoin’s market price has maintained strength above $120,000 despite this increased activity from the supply side. Analysts posit this resilience, coupled with the changing holder composition, suggests the market may be undergoing a mid-cycle structural reset.