Since May 27, short-term Bitcoin holders have begun actively selling their assets, leading to significant market changes.
Short-Term Bitcoin Sales
According to on-chain data from CryptoQuant, short-term holders (STHs) have offloaded about 800,000 BTC since May 27. This has created negative momentum with a net outflow of approximately 2 million BTC, marking the worst figure on record.
What Does Negative Momentum Mean?
Negative momentum, in this context, measures the net outflows minus inflows among holders over a period. A -2M BTC value indicates that, even after some accumulation, overall outflows strongly outweighed inflows. It reflects a shift in sentiment: many holders appear inclined to take profits or reduce exposure.
Impact on Bitcoin Market
When STHs reduce their holdings en masse, it can dry up short-term liquidity and buying support. This selling pressure may influence price volatility and discourage new buyers, at least in the near term. While long-term holders (LTHs) often absorb these sales, a rapid shift in short-term sentiment can cascade into broader market moves.
The situation with the sales of short-term Bitcoin holders underscores the importance of sentiment dynamics in the market. Negative momentum may signal potential challenges in attracting new investors in the near future.
