Bitcoin (BTC) Short-Term Holders Are Starting to Distribute Their Coins

After an impressive outing in the past week, the price of Bitcoin seems to be in a cool-off period, sitting nearly 4% away from its recent all-time high.

The crypto market has begun the new week on a mixed note, with Bitcoin showing signs of slowing down after its impressive rally throughout the past week.

After notching a new all-time high of nearly $114,000 on Friday, the price of Bitcoin has pulled back slightly, currently trading at around $109,000. This marks a nearly 4% decrease from its recent peak.

However, it's worth noting that the cryptocurrency managed to close the week in positive territory, which is a common occurrence for the crypto market at the end of the week in 2025.

But what could be responsible for this sluggishness in the Bitcoin price over the past day?

A group of investors might be to blame, according to the latest on-chain observations. These recent signs also point to the possibility of the bull cycle entering its final stages.

Here’s When BTC Price Could Begin To Witness Significant Correction

In a new post on X, investment data firm Alphractal revealed that the Bitcoin short-term holders (STH) are starting to distribute their coins.

The short-term holders are the most responsive group of investors, seen with the BTC investors shaving off their holdings following the recent increase in the Bitcoin price. This on-chain observation is based on the changes in the Bitcoin Supply Held By Short-Term Holders indicator, which tracks the total amount of BTC owned by investors for less than 155 days.

As shown in the chart below, this metric has been decreasing in recent times, signaling ongoing distribution by short-term investors.

From a historical perspective, when the supply held by STH witnesses an abrupt decline, the price of Bitcoin is likely close to major cycle tops. Essentially, the responsive investors sell their assets as the price rises, slowing down the coin's demand.

Alphractal noted that this is "a classic sign" that the bull cycle might be nearing its final stages. The on-chain analytics firm also highlighted that the Short-Term Holder realized price currently sits at $94,500, acting as the final support level preventing this investor group from going underwater.

Conversely, the Long-Term Holder realized price is currently around $33,000, which suggests a clear behavioral divergence between long-term and short-term investors. Ultimately, Alpractal noted that the Bitcoin price still managed to reach new all-time highs in 2021 despite the STH distribution.

Therefore, the market intelligence platform believes that the BTC price still has room for some upside movement, even though macro on-chain signals and the halving cycle pattern suggest a significant correction could begin after October 2025.