Long-term holders (LTHs) tend to accumulate and hold during downturns, reducing circulating supply. Short-term holders (STHs) react more to price swings, often selling during dips and buying during rallies, amplifying volatility.
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Analyze recent crypto market efficiency changes via metrics like price autocorrelation/arbitrage spreads. Improved efficiency: narrower spreads, faster price discovery. Reduced efficiency: larger spreads, delayed adjustment, raising transaction costs and distorting price signals.
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When new hot concepts appear, the market usually reacts positively in the short term, and the prices of related cryptocurrencies rise. However, the sustainability and depth of this reaction depend on the actual application and development potential of the concept. If there is no substantial support, the enthusiasm may fade quickly.
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