STH Profitability Hits 30-Day Streak, Boosting Bitcoin Bull Market Odds

Data from CryptoQuant shows that Bitcoin's short-term holder (STH) cohort has been in profit since August 16. STH investors are wallets holding an unspent transaction output (UTXO) for less than six months, corresponding to newer buyers who are more sensitive to short-term price moves and volatility.

The ratio of profits to losses among STHs is currently $168.2 billion in profit versus $102.6 billion in loss. However, CryptoQuant emphasizes that the lengthening uninterrupted periods of STH profitability is a key sign of market strength, particularly at the end of Bitcoin's 2022 bear market.

The phenomenon of STH profitability has characterized Bitcoin market recoveries throughout BTC price cycles, and CryptoQuant sees it as a prerequisite for the return of a long-term BTC price uptrend this cycle. Newer investor cost bases cluster above $70,000, with the most significant portion sitting at $63,372.