On-chain data from CryptoQuant indicate that wallets classified as short-term holders collectively acquired an additional 559,000 BTC between early July and early October, lifting their total supply from 4.38 million to 4.94 million BTC. This accumulation phase coincides with Bitcoin trading near record highs, suggesting that a fresh cohort of market participants is entering positions despite elevated price levels.
The concept of short-term holders encompasses addresses that have held Bitcoin for a period typically less than one year. These wallets exhibit dynamic trading behavior and often reflect changing market sentiment. The recent surge in short-term supply highlights sustained buying pressure, even as profit-taking by earlier investors might be expected. Data shared by on-chain analyst Axel Adler Jr demonstrate that significant volumes have flowed into new and existing addresses, underscoring resilient demand across diverse investor segments.
Concurrently, the Fund Flow Ratio, a metric measuring the proportion of on-chain transaction volume associated with exchange deposits and withdrawals, has declined to its lowest level since July 2023. A lower ratio implies that fewer coins are being moved onto trading platforms for potential sale. Instead, increased movement into self-custody wallets and decentralized finance protocols points to a preference for long-term holding and strategic deployments. This shift in transaction patterns may reflect confidence that prices will continue to appreciate or stabilise at current ranges.
Market observers note that periods of reduced exchange inflows often precede extended upward trends, as coins remain off-exchange and are less likely to enter sell orders. Despite the recent correction seen in early October, Bitcoin’s seven-day performance remains positive, up nearly 6%. Trading volume has sustained above $70 billion daily, indicating that the market retains ample liquidity. Analysts advise monitoring support levels between $117,000 and $118,000, where prior accumulation has occurred and short-term holders may defend positions if prices dip further.
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