Bitcoin Signal: Traders Dump, Miners Diamond Hand
The latest on-chain data has just flashed a major signal for the market. According to Ki Young Ju, CEO of CryptoQuant, we are seeing a clear divergence in behavior between market participants. While traders and short-term holders are actively selling to lock in profits after the recent rally, the “old guard”—Bitcoin miners and long-term holders—are refusing to sell. They are holding the line.
Disclaimer: This content is for informational purposes only. It does not constitute financial advice. Always do your own research (DYOR) before making any investment decisions.
The Paper Hands vs. Diamond Hands
To understand this dynamic, you need to know who is who in the on-chain zoo.
Short-Term Holders (STH) are the tourists. These wallets have held BTC for less than 155 days. They are sensitive to price action, prone to panic selling, and quick to take profits at the first sign of a pump.
Long-Term Holders (LTH) and Miners are the believers. These guys have weathered the bear markets and aren’t interested in quick flips. When they refuse to sell despite high prices, it’s a massive vote of confidence in the asset’s future.
What the Data Tells Us
Ki Young Ju’s analysis points out that the selling pressure we are seeing right now is coming almost exclusively from the speculative side of the market. Traders are dumping to capture gains. However, the supply shock is being cushioned because the entities with the biggest bags—the miners and the multi-year HODLers—are not liquidating.
This creates a tug-of-war. The price might chop sideways or dip as traders exit, but the floor is strong because the long-term supply isn’t flooding the order books. In crypto slang, the “weak hands” are transferring their coins to the “strong hands.”
What This Means for the Market (and You)
This is classic bull market accumulation behavior. If miners (who have bills to pay) aren’t selling, they likely expect higher prices soon. The exit of short-term speculators actually cleanses the market, resetting leverage and preparing the ground for the next leg up.
For us, the signal is clear: don’t get shaken out by the noise. If the miners are holding through this volatility, patience is likely the best play. The “smart money” is betting on the long game.
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