With Bitcoin trading just below its $109k all-time high, market excitement is resurfacing. The Short-Term Holder Supply in Profit/Loss Ratio effectively tracks sentiment shifts among active investors.

This metric proved valuable during the April 7th correction, plunging to 0.03 when nearly all STH-held supply went underwater at the $76k low. Since then, it has surged above 9.0, indicating over 90% of STH supply is now profitable.

High ratio values typically suggest higher-risk conditions as investors begin taking profits. While these conditions can persist, they often precede profit-taking phases or local tops if fresh demand slows.