This classification stems from observing that Bitcoins held beyond this period are less likely to be sold in response to market volatility, indicating a stronger conviction in long-term value.
In the Bitcoin ecosystem, market participants are often segmented into long-term holders (LTHs) and short-term holders (STHs), based on the duration Bitcoin is held. LTHs are defined by Glassnode as entities that hold Bitcoin for extended periods, typically considered to be holding for longer than 155 days. This classification stems from observing that Bitcoins held beyond this period are less likely to be sold in response to market volatility, indicating a stronger conviction in long-term value. In contrast, STHs are more reactive to price movements, often contributing to immediate supply and demand fluctuations.