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The official CryptoQuant team tweeted:
The metric used here by the cryptographic analysis company is the Short-Term Profit (STH) to Exchanges (often abbreviated as STH P&L to Exchanges. It is used to understand whether short-term investors want to liquidate their BTC holdings on exchanges. Short-term holders are defined as BTC addresses that have held these short-term metrics for days or less than their reserves are used. by CryptoQuant, but also by other analytical websites.
If the indicator is higher, it indicates that STHs are selling their crypto at a profit based on recent price movements, while a lower value indicates that short-term holders are giving up. Recently, as CryptoQuant notes, the value has risen sharply, surpassing the benchmark spot price. About 27,000 BTC were deposited by these short-term players.
Macro perspective
With the recent price recovery above $70K, an opportunity has arisen for these STHs and they are taking advantage of it, thereby creating selling pressure in the market. The crypto market has shown strong resilience amid recent external factors, and digital assets are holding up well despite ongoing challenges in the Middle East.
 
However, the increase in income of STH shows that they do not want to be kept in the long term, but this is not always the case. Historically, much of this selling activity following a price recovery can be easily absorbed by the market unless the price index falls too low. It can easily become a counter signal to buy, even if the price has not moved much yet.
Currently, the realized price of Bitcoin is around $68,000 and is only rising above the spot level. STHs tend to be younger investors who are more emotional and want to make quick trades. The real buying pressure from this demographic comes when they find a certain price level attractive for short-term gain. In some cases, mature users begin to gain long-term benefits from this group, which is generally considered more suitable for strong and long-term prospects.
