Bitcoin LTHs start selling to STHs: Warning sign for BTC?

• Long-term holders have started selling Bitcoin to short-term holders.
• Social media sentiment and crypto market news remained quite positive.

Bitcoin’s [BTC] historical data revealed significant shifts between long-term (LTH) and short-term holders (STH). LTHs have begun offloading their holdings to STHs, marking a notable change in BTC’s ownership dynamics.

The Coin Days Destroyed metric spiked, indicating that large, older holdings being sold, often presaging volatility.

Simultaneously, the supply held by STHs surged, capturing these coins, suggesting a shift from seasoned investors to newer market participants.

Source: Alphractal

This redistribution could potentially destabilize prices in the short term, as newer holders could be less likely to hold through turbulence, leading to increased selling pressure.

Historically, such handovers have preceded either significant price corrections or consolidations, as new holders’ behavior during market swings could dictate the next major move.

If LTHs continue to sell into strength, this could cap potential rallies or exacerbate downturns, depending on market reactions and broader economic indicators.

Bitcoin power grid

However, the Power Grid which tracks Bitcoin’s strength signals never breached the 100% power threshold until recently, an area indicative of cycle tops.

The 2025 reading on the grid displayed an uptick, reaching 82.5% power, signaling robust market momentum but falling short of a definitive cycle peak.

This suggested that while Bitcoin approached a significant market juncture, a cycle top hadn’t conclusively formed as the market navigated through the start of 2025.

Source: X

This data portended continued market strength for Bitcoin, aligning with predictions that 2025 would emerge as a peak year for crypto, reflecting an optimistic outlook for sustained growth and investment enthusiasm.

What’s the sentiment among holders?

Again, the sentiment analysis for Bitcoin, depicted on Twitter and in crypto market news, showed an overwhelmingly positive trend.

There were only sparse instances of negative sentiment among the public, coinciding with notable price fluctuations.

Specifically, despite BTC’s price oscillating between $108K and $92K, investors showed lack of fear.

Historical patterns suggested that when sentiment drastically drops, it typically heralds a price bottom, signaling opportune moments for purchasing. This has been noted a few times annually.

Source: Alphractal

Finally, the Fear & Greed Index, marked at 66 in early January 2025, indicated a slight reduction in greed, the lowest since November 2024.

Despite this dip, the prevailing sentiment remained predominantly greedy, suggesting sustained buying interest in Bitcoin.

As the index stayed above the neutral 50 mark, Bitcoin’s price hovered around $95K, showing stability after recent fluctuations.

Read Bitcoin’s [BTC] Price Prediction 2025–2026

This sentiment alignment indicated no immediate price surge, yet the groundwork for continued investment was evident.

It suggested that significant market corrections could still attract robust buying from those betting on future gains.