Bitcoin Supply Rotation: Unpacking the Dramatic 223K BTC Holder Shift

Key Points

1. Bitcoin supply rotation refers to the movement of Bitcoin from long-term holders (LTHs) to short-term holders (STHs), changing the liquidity profile of the circulating supply.

2. The reported 223,602 BTC rotation represents approximately 1.14% of Bitcoin's circulating supply and occurred within a 30-day window.

3. Long-term holders (LTHs) are defined as those holding Bitcoin for more than 155 days, while short-term holders (STHs) hold it for less than 155 days.

4. Such rotations can signal evolving market dynamics, as LTH supply is considered 'illiquid' or 'dormant,' while STH supply is more 'liquid' and likely to be sold.

5. The motivations behind this rotation could include profit-taking or other factors, but it does not guarantee a specific market outcome and should be considered alongside other metrics.