Bitcoin Short-Term Holder Share Dips Below 4%, Market Nearing Bottom

The proportion of Bitcoin's short-term holders has fallen below 4%, a trend often observed in past cycles as the market approaches a bottom.

According to CryptoQuant contributor MAC D, the share of short-term holders who have held Bitcoin for one week to one month has declined to 3.98%. This drop is seen as a meaningful signal that the market is nearing a potential bottom.

However, analysts warn that even if the market reaches a bottom, there is still a risk of a sharp decline. MAC D notes that if capitulation occurs, Bitcoin could plunge 20-30% in a single day, making it essential to employ a staggered-buying strategy and consider opportunity costs.

The analyst also points out that Bitcoin's recent behavior shows stronger gains in rebound phases compared to U.S. equities. If spot ETF inflows and futures open interest increase simultaneously, it could be interpreted as a signal of entry into a full-fledged bullish cycle.