Bitcoin Long-Term Holders See Significant Cost Surge as Market Dynamics Shift

On May 17th, an analysis from COINOTAG highlights a **noticeable spike** in the average acquisition cost for **Bitcoin Long-Term Holders (LTH)**, which surged by 9.57% over the past week. This rise results from a combination of **Short-Term Holders (STH)** offloading their higher-cost positions and the liquidation of lower-cost long-term holdings. The current average cost for LTH stands at approximately **$31,000**, suggesting a considerable number of holdings priced below this threshold were sold off.

Interestingly, LTHs, often referred to as “**Diamond Hands**,” typically exhibit reluctance to engage in trading unless influenced by significant market factors such as fear or hedging strategies. At this juncture, the absence of panic selling indicates that LTH holders may be preemptively adjusting their positions, potentially anticipating a market peak. Even so, their assessment of market trends could reflect uncertainty, possibly leading them to exit prematurely.