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LTH/STH Supply Ratio

The LTH/STH Supply Ratio compares the amount of Bitcoin held by Long-Term Holders (coins unmoved for 155+ days) to Short-Term Holders (coins moved within the last 155 days). It tracks the tug-of-war between accumulation by patient holders and distribution to newer market participants.

Definition

The LTH/STH Supply Ratio compares the amount of Bitcoin held by Long-Term Holders (coins unmoved for 155+ days) to Short-Term Holders (coins moved within the last 155 days). It tracks the tug-of-war between accumulation by patient holders and distribution to newer market participants.

Explanation

In on-chain analysis, Long-Term Holders (LTH) are defined as entities holding coins that have not moved for at least 155 days, while Short-Term Holders (STH) hold coins that have moved within the last 155 days. The 155-day threshold is based on research showing that coins held beyond this point have a statistically low probability of being sold. The LTH/STH Supply Ratio divides total LTH supply by total STH supply.

This ratio follows a predictable cyclical pattern. During bear markets and early recovery phases, the ratio climbs as patient holders accumulate and refuse to sell, gradually converting STH supply into LTH supply. The ratio peaks just before or during the early stages of a bull run, when long-term holder supply is at its maximum. As prices surge, LTH holders begin distributing to eager new buyers, and the ratio declines.

The inflection points of this ratio are powerful signals. When the LTH/STH ratio begins declining after a sustained rise, it marks the start of distribution — long-term holders are selling into strength. When it begins rising after a sustained decline, it marks the start of re-accumulation — smart money is buying the fear. These transitions between accumulation and distribution regimes are among the most reliable structural signals in Bitcoin cycle analysis.

Key Takeaways

  • •Compares supply held by long-term holders (155+ days) to short-term holders (under 155 days).
  • •Rising ratio means accumulation — long-term holders are absorbing supply.
  • •Falling ratio means distribution — long-term holders are selling to new participants.
  • •Inflection points in the ratio reliably mark transitions between cycle phases.

See It in Action

Explore real-time data and interactive charts related to LTH/STH Supply Ratio on Bitcoin Horizon.

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Frequently Asked Questions

Research by Glassnode found that coins held beyond 155 days have a statistically very low likelihood of being spent. This threshold effectively separates conviction holders from speculative traders and has proven to be a meaningful behavioral boundary across multiple Bitcoin cycles.

At bull market peaks, the LTH/STH ratio drops significantly as long-term holders distribute coins to new buyers. STH supply surges while LTH supply contracts. The most aggressive distribution — where the ratio falls fastest — has historically aligned with the final phase of a cycle top.

A rising ratio during price weakness suggests smart money accumulation and is generally bullish for the medium term. A falling ratio during price strength suggests distribution and warrants caution. The ratio is best used for strategic cycle positioning rather than short-term timing.

Related Terms

MVRV Z-Score
A metric comparing Bitcoin's market value (current price times supply) to its realized value (the value of all coins at the price they last moved). Extreme high readings signal overvaluation; low or negative readings signal undervaluation.
Stock-to-Flow
A valuation model that prices Bitcoin based on its scarcity by dividing the existing supply (stock) by the annual production (flow). The model, popularized by analyst PlanB, suggests Bitcoin's price should increase after each halving as the flow is reduced.
NVT Ratio
The NVT (Network Value to Transactions) Ratio compares Bitcoin's market capitalization to its daily on-chain transaction volume. It functions similarly to a P/E ratio in traditional finance, measuring whether the network is overvalued or undervalued relative to its economic throughput.
Realized Cap
Realized Cap values each Bitcoin at the price it last moved on-chain rather than at the current market price. It represents the aggregate cost basis of all coins in circulation and serves as a more grounded measure of capital invested in the network.
Thermocap
Thermocap measures the total revenue paid to Bitcoin miners since the genesis block, calculated as the cumulative sum of all block rewards and transaction fees in USD terms. It represents the minimum cost of producing all existing Bitcoin.
SOPR (Spent Output Profit Ratio)
SOPR measures the profit ratio of coins moved on-chain by dividing the realized value of spent outputs by their value at creation. A SOPR above 1 means coins are moving at a profit on average, while below 1 means they are moving at a loss.
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