Short-Term Bitcoin Balances at 2024 Lows: A Cooldown Signal

This chart tracks the total Bitcoin balance held by short-term holders, a key barometer for speculative interest.

Recently, these balances have declined to their lowest levels since October 2024 and remain on a downward trajectory. This drop mirrors the broader pullback in Bitcoin’s price, and this combination historically signaled cooldown phases in the market, as shown in the red box.

While such phases often involve short-term weakness, they also help reset market conditions and can pave the way for healthier, more sustainable price growth.