Bitcoin's short-term holder supply is decreasing at its fastest monthly rate since 2012. This trend has caught the attention of market analysts.

CryptoQuant author Axel Adler Jr highlighted this development in a recent social media post.

Short-term holders (STHs) are defined as investors who acquired their coins within the past 155 days. They represent one segment of the Bitcoin market, the other group consists of long-term holders (LTHs).

Historically, longer holding periods correlate with decreased likelihood of selling. STHs are generally considered more volatile investors. LTHs, in contrast, tend to be more steadfast. Yes, they are the legendary HODLers, the pillars of the crypto market.

The 30-day change in STH supply serves as a key metric for investor behavior. Earlier this year, this metric spiked during Bitcoin's rally to new all-time highs. It indicated a significant transfer of supply from LTHs to STHs.

Such transfers are typical during bull markets. LTHs often take profits when Bitcoin reaches new heights. New demand, driven by market hype, absorbs this selling pressure.

The trend has now reversed. The 30-day change in STH supply has plunged into negative territory. Over the past month, STH supply has decreased by approximately 15%. This marks the lowest 30-day change since 2012.

This decrease doesn't necessarily mean LTHs are buying from STHs. Instead, it suggests STHs are maturing into the LTH category, they're holding past the 155-day threshold that defines STHs.

The shift indicates increased patience among STHs during the current consolidation period. Analysts view this rise in HODLing sentiment as potentially positive for Bitcoin's outlook. HODLers aren't selling when prices plummet, but they tend to accumulate when they think the price is about to go up.