Bitcoin’s (BTC) on-chain indicators are signaling notable changes, with the short-term holder (STH) MVRV ratio dropping to 0.82. This figure is historically linked to market strain and capitulation, per Glassnode’s analysis.

The STH MVRV compares the market price of Bitcoin to the realized price for short-term holders. A value under 1.0 suggests that recent purchasers are generally in a loss position. The current value of 0.82 indicates that these holders are experiencing an average loss of about 18%.

Key Points:

• The STH MVRV at 0.82 indicates that short-term holders could be facing an average loss of 18%, nearing historical lows that have previously signaled market bottoms.
• Long-term investors have bought around 500,000 BTC since February, absorbing more Bitcoin than the short-term sellers have distributed.

This metric reflects that many short-term investors are under pressure, with over 300,000 BTC transacted by them as they react to market conditions. Conversely, long-term holders are strategically accumulating, reflecting a potential shift in market dynamics.