STH Cost Basis, or Short-Term Holder Cost Basis, represents the average price at which short-term investors acquired their digital assets. Short-term holders are typically defined as entities that have held their assets for a period less than a specified duration, often 155 days. This metric provides insight into the aggregate profitability or loss of recent market entrants. It is a key on-chain indicator for assessing short-term market sentiment and potential selling pressure.
Context
Crypto news frequently references the STH Cost Basis when analyzing market sentiment and predicting potential price movements, especially during corrections or rebounds. When the current market price falls below the STH Cost Basis, it indicates that short-term holders are generally at a loss, which can lead to increased selling pressure as they seek to exit. Conversely, a price above this level suggests short-term profitability, potentially encouraging further holding or profit-taking.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
