Short Term Holder

Definition ∞ A short term holder in the cryptocurrency market is an entity that has acquired digital assets relatively recently, typically holding them for less than 155 days. These holders are generally more sensitive to price fluctuations and tend to sell their assets during market downturns or for quick profits. Their cost basis is usually closer to the current market price, making them more susceptible to realizing losses. Their activity often contributes to short-term market volatility.
Context ∞ The behavior of short term holders is a key analytical focus in on-chain metrics, often indicating immediate market sentiment. News reports frequently track their aggregate profitability and spending patterns to predict potential price movements. The discussion often contrasts their market influence with that of long-term holders, who exhibit greater price inelasticity.

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→Structural Strength

→Market Risk Reset

→Price Correction

Recent Bitcoin Price Drop Pushed New Buyers Underwater Resetting Market Risk

The market's recent dip forced new investors to sell at a loss, cleansing excess speculation and strengthening the overall demand floor.

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→On Chain Divergence

→Accumulation Phase

→Realized Profit Loss

SOPR Divergence Confirms Strong Holder Conviction despite Price Drop

The SOPR divergence shows investors refused to sell at cheaper prices, signaling a conviction-driven bottom is forming.

→Risk Cleansing

→Short Term Holder

→Supply in Loss

Recent Buyers Are Now in Loss Cleansing Market Speculation

The average investor who bought Bitcoin in the last five months is now underwater, a necessary stress test that purges market risk.

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→Spot Demand Exhaustion

→Cost Basis Breach

→ETF Flow Weakness

Weakening Spot Demand Pushes Bitcoin below Key Investor Cost Basis

The market is turning defensive; Bitcoin's price has fallen below the average purchase price of recent buyers, confirming demand exhaustion.

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→Structural Support

→Price Floor

→Volatility Spike

Recent Buyer Cost Basis Breach Confirms Market Demand Exhaustion

The average purchase price for new investors has failed, confirming a necessary structural market reset is underway.

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→Long-Term Holders

→Coin Dormancy

→On-Chain Data

Weak Hands Selling Supply to Stronger Investors

Speculators are capitulating and selling their coins at a loss, but large, long-term investors are absorbing the supply, confirming a structural redistribution.