The proportion of Bitcoin held for less than six months by short-term holders (STHs) continues to decline. According to the latest data, Bitcoin held for less than one day represents 1.2% of the supply, while coins held between one day and one week account for 2%. Bitcoin held between one week and one month represents 5.6%, followed by 6.7% for the one-to-three-month group and 8.1% for the three-to-six-month group. Together, short-term holders now control 23.6% of the Bitcoin supply.
The decline in short-term supply indicates that a larger portion of Bitcoin is moving into the hands of long-term holders (LTHs). Since these investors are generally less likely to sell during periods of market volatility, the trend can reduce liquid supply and ease short-term selling pressure. CryptoQuant noted that similar patterns have historically appeared during the later stages of Bitcoin bear markets.
However, on-chain data also suggests that Bitcoin demand has not yet returned strongly. New Bitcoin purchases increase the supply attributed to short-term holders, while periods of stronger demand typically cause the STH share to rise rapidly. According to CryptoQuant, the current low proportion of short-term holders reflects subdued market interest but may also represent a potentially positive signal based on patterns observed in previous market cycles.
