Bitcoin Long-Term Holders' Profit-Taking Pressure Rises Amid Price Surge

Bitcoin's price surge has led to increased profitability for long-term holders, resulting in more profit-taking. According to an on-chain analysis, the 30-day distribution volume of Bitcoin from long-term holders rose by 61.5% to 281,900 BTC on August 28, marking the highest level this year.

This indicates that long-term holders are sitting on gains of around 60% compared to their average purchase price, as shown by the MVRV ratio reaching 1.64 and standing at 1.60 as of August 31.

On-chain analyst Axel Adler Jr. warns that if long-term holders continue to be profitable, additional profit-taking could follow, with the key issue being how much of the increased selling supply can be absorbed by new demand.