Short-Term Holders Flood Exchanges as Bitcoin's Rally Gains Momentum
Bitcoin's recent price surge has pushed short-term holders back into profit, with about three-quarters of their supply now trading above its average purchase price. According to on-chain analyst Axel Adler Jr., the share of short-term holder supply in profit jumped from 26.1% to 74.9% as Bitcoin rose from $63,000 to $77,000.
As more of this profitable supply returns to exchanges, a metric tracking exchange inflows from short-term holders has turned positive, indicating potential selling pressure from these investors is building. Adler notes that the risk of short-term overheating could rise if exchange inflow metrics stay above 25,000 BTC and Bitcoin's rally loses momentum.
However, if prices hold steady and exchange inflows move back toward zero, selling pressure could ease, potentially leading to a more stable consolidation phase. For now, it seems that short-term holders are ready to cash in on their profits.