BTC STHs Hold onto Profits for Record 30 Days, Boosting Market Optimism

Bitcoin (BTC) short-term holders have been in partial profit for nearly a month, marking their longest consecutive stint of making money this year. This development has caught the attention of market analysts as a key indicator of market strength.

The data from CryptoQuant shows that since August 16, short-term holder coins held in profit total $168.2 billion, while those held below acquisition price amount to $102.6 billion. The ratio of profit to loss is less important than the fact that STHs have held onto at least some profit for 30 consecutive days.

CryptoQuant notes that this phenomenon has characterized Bitcoin market recoveries throughout its price cycles and was also observed at the end of the 2022 bear market. It sees this as a prerequisite for the return of a long-term BTC price uptrend this cycle.

The STH cohort includes wallets holding an unspent transaction output (UTXO) for less than six months, which correspond to newer buyers who are more sensitive to short-term price moves and volatility. The cost basis of these entities currently sits at $63,372 for those holding between one and three months, while the more mature end of the STH base has a cost basis of $73,190.

The broader Bitcoin investor base has stayed in net profit since August 19, with the spent output profit ratio (SOPR) tracking net profits or losses across all investors still above its breakeven level of 1.