Bitcoin Surges 17% to New High as Short-Term Holders Accumulate

Over the past month, Bitcoin has been trading within the $100,000 to $110,000 range before recently breaking out to reach a new all-time high. On-chain data indicates that a shift in the behavior of Bitcoin holders may have significantly influenced this price movement. Long-Term Holders (LTHs) have been distributing their holdings, while Short-Term Holders (STHs) have been accumulating, according to on-chain analyst Boris.

Boris explained that LTHs, who typically hold Bitcoin for extended periods, have been accumulating the cryptocurrency from late May to the end of June. This accumulation helped Bitcoin maintain its support above the $100,000 mark despite heavy distribution from STHs. The analyst noted that LTHs absorbed much of the selling pressure from STHs, who sold over 563,000 BTC during this period.

However, this dynamic has recently reversed. LTHs have started to distribute their holdings, likely due to profit-taking as Bitcoin's price continued to rise. Meanwhile, STHs have begun to accumulate Bitcoin, indicating renewed retail interest or speculative entry during the current bullish rally. This shift in behavior suggests that the market is experiencing a handover from LTH support to STH support, which may have fueled Bitcoin's latest breakout.

The rotation of supply between these holder classes is not uncommon in crypto market cycles. However, the scale and timing of this switch suggest that Bitcoin's price action may hold more interesting rallies in the near future. If the short-term buying pressure should taper, the absence of long-term support may cause a lower support level to be retested. As of the latest update, Bitcoin is valued at $117,300, reflecting no significant movement in the past 24 hours.