Short-Term Bitcoin Holders Return to Profit, but Selling Pressure Looms

A recent analysis by on-chain analyst Axel Adler Jr. has highlighted that short-term Bitcoin holders have moved back into profit, but their increased exchange inflows could signal potential selling pressure.

The share of short-term holder supply in profit rose to 74.9% from 26.1% on August 17, while exchange inflows turned positive, reaching 28,600 BTC on August 24, a sharp reversal from negative 18,700 BTC on August 16.

Short-term holders typically hold Bitcoin for less than 155 days and are more likely to sell during price rallies compared to long-term investors. The increased exchange inflows suggest that some of these holders may be moving coins to trading platforms to lock in profits.

The analysis comes as Bitcoin trades in a range after a volatile period, with prices dipping sharply in mid-August causing many short-term holders to fall into losses. The recent recovery has brought them back to profitability, but the increased exchange inflows signal that not all are confident in further upside.