Learn Concept: Understanding the Role of Short-Term and Long-Term Holders in the Bitcoin Bull Market

By: Eliza Bennet

The role of Short-Term Holders (STH) and Long-Term Holders (LTH) in bitcoin’s price can offer fascinating insights into the underlying trends in the crypto market. Both STH and LTH metrics provide a concrete picture of investors' behaviour and their conviction in the ongoing bull market.

The STH Realized Price signifies the average price of Bitcoins transacted within the past 155 days, excluding those held in exchange reserves. These Bitcoins are more likely to be spent. On the contrary, the LTH Realized Price refers to the Bitcoins that remain unspent for the last 155 days, suggesting a decreased likelihood of spending.

In a bullish market, the realized price often surpasses the LTH realized price. This reflects a higher aggregate cost basis established by coins changing ownership and signifies the continued strength of the uptrend. Understanding these metrics can aid advanced crypto users in making more informed investment decisions.