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Bitcoin’s short-term holder balance—a metric historically tied to market turning points—has shown limited shifts in recent weeks despite the asset’s rally to record highs, according to analysis by institutional DeFi analytics firm Sentora (formerly IntoTheBlock). The firm’s data categorizes
investors into three groups based periods: traders (less than a month), cruisers (short-to-mid-term holders), and hodlers (long-term investors). The net supply changes among these groups typically signal market inflection points, as older cohorts sell and reset their holdings to zero, transferring coins into the traders’ category [1]. However, recent trends indicate a neutral pattern, with no sharp spikes in short-term holder balances that often accompany market tops or bottoms [2].The analysis highlights that during previous market cycles, major price corrections or surges coincided with significant shifts in these balances. For example, during market tops, hodlers and cruisers frequently offload holdings, increasing trader balances. The absence of such spikes currently suggests the recent rally, which pushed Bitcoin to all-time highs, has not yet triggered broader distribution or capitulation among longer-term investors. “Interestingly, we’re not seeing major shifts at the moment,” Sentora noted, implying the upward momentum could persist [2].
Meanwhile, on-chain transaction volume has surged, with Bitcoin’s weekly USD transaction volume reaching nearly $700 billion—the highest level since 2022. While this reflects robust activity, it remains below the 2021 bull market peaks. The price of Bitcoin, trading around $119,000, has been in a consolidation phase, oscillating within a narrow range. This sideways movement contrasts with historical patterns where such metrics have often preceded significant price action [3].
Analysts caution that interpreting the current state requires caution. The lack of major shifts in short-term holder balances could indicate either a continuation of the bull trend or a delayed reaction to market conditions. Additionally, the elevated transaction volume underscores active participation but does not necessarily align with traditional bearish or bullish signals. As Bitcoin navigates this phase, investors are advised to monitor further developments in both on-chain metrics and broader market sentiment to gauge the trajectory of the current cycle [3].
Sources:
[1] [Bitcoin Short-Term Holder Balance Analysis by Sentora](https://www.newsbtc.com/bitcoin-news/bitcoin-often-flags-turning-points-saying-now/)
[2] [Historical Market Turning Points and Investor Behavior](https://www.newsbtc.com/bitcoin-news/bitcoin-often-flags-turning-points-saying-now/)
[3] [On-Chain Transaction Volume and Market Activity](https://www.newsbtc.com/bitcoin-news/bitcoin-often-flags-turning-points-saying-now/)
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