Definition ∞ Short-term supply in cryptocurrency markets refers to the portion of an asset’s total circulating supply that has been held by investors for a relatively brief duration, typically less than 155 days. These holders are often more sensitive to price fluctuations and are more likely to sell their assets in response to market volatility or minor price movements. This segment of the supply represents the most liquid and readily available tokens for trading. It contrasts with assets held by long-term investors.
Context ∞ Short-term supply is a key metric analyzed in cryptocurrency news and on-chain reports to gauge immediate selling pressure and market sentiment. A high proportion of short-term supply can indicate a more volatile market, as these holders are prone to quick profit-taking or panic selling. Conversely, a shrinking short-term supply might suggest a transition towards stronger holder conviction and reduced immediate selling pressure.
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