Short Term Holder Supply

Definition ∞ Short Term Holder Supply refers to the total amount of a cryptocurrency held by addresses that acquired their assets relatively recently, typically within the last 155 days. This cohort of holders is often considered more sensitive to price fluctuations and more likely to sell during market volatility. It serves as an on-chain metric for assessing immediate selling pressure or market liquidity. A rising short term holder supply can indicate increased speculative activity.
Context ∞ In cryptocurrency news and analysis, changes in the short term holder supply are closely monitored for insights into market sentiment and potential price movements. A significant increase might suggest a heightened risk of profit taking or capitulation during price drops. Conversely, a reduction can indicate coins moving into the hands of long-term holders.