Short-Term Holder Wealth

Definition ∞ Short-term holder wealth refers to the aggregate value of digital assets held by participants who have acquired them relatively recently, typically within the last 155 days for Bitcoin. This metric provides insight into the financial position of newer market entrants or those actively trading. It indicates the total profit or loss held by this cohort, reflecting their recent market performance. Changes in short-term holder wealth can signal shifts in market momentum and potential selling pressure.
Context ∞ Short-term holder wealth is a crucial on-chain metric used in cryptocurrency analysis to gauge market sentiment and potential supply dynamics. The current market frequently observes this group as more sensitive to price fluctuations, often reacting quickly to both gains and losses. A key discussion centers on how the profitability or unprofitability of this cohort influences overall market liquidity and price action. Future analysis will continue to refine the timeframes and methodologies for segmenting holder groups to gain deeper behavioral insights.