Daily Bitcoin On-Chain Snap #31
Short-Term Holders took profit ahead of large BTC expiry on Friday
The ratio calculates Short-Term Holder Supply in Profit/Loss and was created by ARK Invest. Similar to SOPR, it detects local bottoms in bull markets and local tops in bear markets.
It helps to compare PnL to relative long/short holder supply to explain supply profitability between both long-term and short-term holders. Notably, STH supply in profit was skewed negative on 29 September with ~12% in loss and 7% in profit. This reversed on 18 October with 18% of STH supply in profit and .02% in loss. There was a similar setup during February to April, when STH supply in profit spiked from 19% to ~31% before reversing in the ensuing months to 22% in loss and .45% in profit.
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