Cryptocurrency analytics firm Alphractal has assessed the market situation following Bitcoin’s recent decline. According to the firm’s analysis, Supply Age Bands data, which categorizes Bitcoin supply by age, shows a sharp decline in the Short-Term Trader (STH) supply of up to 3 months. This indicates that buying interest in Bitcoin is decreasing.
Historically, high levels of this indicator are observed during periods of market enthusiasm and public interest, while low levels coincide with price corrections. Alphractal notes that by analyzing the supply of up to 6 months, it is possible to better understand the impact of Short-Term Investors on Bitcoin. If this supply increases, the price tends to rise, while when it decreases, declines are usually observed.
However, despite the decline in STH supply, it is possible for Bitcoin to reach new highs. In 2021, although the STH supply began to decrease in April, Bitcoin reached new ATH levels in October and November. Similarly, in 2013, this supply recovered within a few months, leading to new highs in the short term.
In line with these analyses, Alphractal states that despite the current conditions, new ATH levels for Bitcoin are possible in 2025. However, it is estimated that it will take at least another 6 months for this to happen.
*This is not investment advice.
