Bitcoin Owners with Short-Term Holdings Realize Gains: Could a Selloff Imminently Occur?
Potential Sell-off by Bitcoin Short-term Holders: A Closer Look
A recent Glassnode report has shed light on the potential sell-off by Bitcoin short-term holders (STHs), a phenomenon that could be triggered by factors such as market volatility, speculative trading behavior, macroeconomic and regulatory changes, and sharp price corrections leading to capitulation.
According to the Glassnode report as of early August 2025, short-term holders have been driving the majority of Bitcoin’s recent sell-off activity. In a 24-hour span, short-term holders accounted for approximately $18.24 billion, or 85.5% of the total Bitcoin spent volume, indicating that recent buyers are significantly more active in selling than long-term holders.
This dominance of short-term holders in selling suggests a market environment with heightened volatility and liquidity. It also points towards a speculative sentiment where many participants prioritize quick profits over long-term holding strategies. This could potentially increase risks for less experienced traders due to rapid price swings.
The report also suggests the possibility of "shakeout" phases that can clear out weaker hands and create accumulation opportunities if strong support levels hold. However, if Bitcoin remains below the current price level for a longer period, it increases the risk of a deeper correction, and Bitcoin could drop towards the lower bound of the air gap near $110,000.
It's worth noting that the Glassnode report did not specify the time frame for the short-term holders in question. Additionally, the report did not provide information on the number of Bitcoin short-term holders in total.
Recently, Bitcoin ETFs recorded a net outflow of 1,500 BTC on August 5, the largest wave of sell-side pressure since April 2025. Keeping an eye on the ETF flows will help to identify whether this latest outflow is just a repeat of the short-lived trend or a shift in investors' sentiment. Outflows from the Bitcoin ETFs have been brief events, with only a few instances of an extended streak of daily outflows.
A sustained price move above the $116,900 level would signal that the demand side is regaining control. If Bitcoin remains below this level, it could lead to further sell pressure from late-stage profit-taking by Bitcoin short-term holders. However, at the time of writing, the Bitcoin price is trading at around $116,800, up over 2% in the last 24 hours.
Interestingly, the report also states that 70% of Bitcoin short-term holders are currently in profit. The report did not discuss the impact of the profitability of short-term holders on the overall Bitcoin market. Furthermore, the report did not provide any forecasts or predictions about future Bitcoin price movements.
In conclusion, sell-offs from short-term holders are mainly driven by their reactive trading style to market volatility and external factors such as regulatory news or macroeconomic events. Currently, these holders are the primary contributors to Bitcoin's on-chain sell volume according to Glassnode data. This development could potentially affect the confidence of Bitcoin short-term holders, but the market seems to be in a relatively balanced position, easing fears about a potential sell-off.
- The sell-off activity in the Bitcoin market may continue to be driven by short-term holders due to speculative trading behavior and factors such as market volatility and rapid price corrections.
- Recent Bitcoin trading has seen a dominance of short-term holders in selling, accounting for over 85% of the total Bitcoin spent volume.
- Crypto finance professionals might want to assess the impact of Bitcoin's short-term holders' profitability on the overall market and the potential risks for less experienced traders due to rapid price swings.
- The majority of short-term Bitcoin holders, approximately 70%, are currently in profit, but the Glassnode report did not discuss the impact of their profitability on future price movements or provide any forecasts or predictions.
