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Bitcoin Market Momentum Rebounds: STH Cap Ratio Signals Investor Optimism

The Momentum STH Cap Ratio, created by BinhDang, a quantitative analyst at CryptoQuant, is gaining attention as a metric to analyze Bitcoin's market direction. The ratio calculates the difference between the Market Cap and Realized Cap and specifically targets short-term holders. When the ratio enters the "WARM" area, it suggests that Bitcoin activity is starting to accelerate, albeit slowly. In the past, this phase has coincided with an upward movement in Bitcoin's price. However, caution is advised as external factors such as inflation concerns and geopolitical problems are keeping the market from quickly entering the "HOT" phase. Similar metrics can be applied to other tokens to track short-term holders and model price changes in the crypto market.

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