On 30th September, the BTC short-term supply was at around 14.7%. This is its lowest value ever. In the past couple of weeks since then, the metric has seen a slight increase to 14.9%.
The reason behind this small rise is Bitcoin’s current rally where the coin broke $47k for the first time since May of this year.
One thing to note here is that this indicator is based on the on-chain movement of the coins. So if some investors are keeping their BTC on exchanges rather than personal wallets, the metric will not show any rise when they sell their coins on the exchange.
Because of this, the short-term supply isn’t the most accurate indicator of whether investors are realizing their profits or not. Nonetheless, it does show that many holders with their own wallets are holding off on selling right now as they think the price will go further up.
At the time of writing, Bitcoin’s price floats around $54.9k, up 0.7% in the last seven days. Over the past month, the crypto has gained 24.6% in value.
The below chart shows the trend in the price of BTC over the last five days: