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Short-Term Holder Exhaustion

Definition

Short-Term Holder Exhaustion refers to a market state where investors who acquired digital assets relatively recently, typically within the last 155 days, have largely sold off their holdings due to price declines. This condition often indicates that these less experienced or less conviction-driven investors have capitulated, realizing losses. It signifies a significant reduction in the available supply from this cohort. This phase typically precedes a market bottom, as the remaining supply is held by stronger hands.