Analysis: Bitcoin long-term holders are taking profits

On-chain analyst Murphy (@Murphychen888) noted on X that the average acquisition cost for Bitcoin (BTC) long-term holders (LTHs) has recently surged to around $31,000. This sharp rise suggests that some early LTHs with low-cost positions have started taking profits. While the increase is partly due to short-term holders (STHs) transitioning into LTHs, the analyst emphasized this factor alone doesn't fully explain the scale of the change. Murphy explained that BTC LTHs, often seen as “diamond hands,” rarely sell, and when they do, it’s usually driven by panic or strategic risk management. In this case, the selling likely reflects the latter, as some LTHs may believe BTC is nearing a local top. Although that view may prove wrong, the analyst noted that the current trend points to strategic profit-taking by early holders.