Bitcoin's long-term holders, known for their diamond hands, have been selling off their coins recently, sparking concerns in the crypto community. On-chain data reveals a decline in the total supply held by these investors, with a negative 30-day change. This trend has been ongoing since January, when spot exchange-traded funds (ETFs) received approval from the US Securities and Exchange Commission (SEC).

The long-term holders, who have held onto their coins for over 155 days, are considered a stubborn group, less likely to sell their assets. However, even they have succumbed to profit-taking, leading to a sharp decline in the metric during the recent price rally. Despite the bearish market, the indicator continues to move down, albeit at a slower pace.

Analyst Axel Adler Jr. notes that the lack of growth in the long-term holder supply may indicate market-wide pessimism. However, this phenomenon has occurred in previous bull runs, suggesting that it may not be a bad sign in the long term. The continued selling off by long-term holders may be negating the buying that occurred during the ETF approval launch.

The Bitcoin price has been affected by this trend, currently trading at around $61,200, down over 4% in the past week. While this may seem concerning, it's essential to consider the historical context and the potential for long-term growth.

In conclusion, the sell-off by Bitcoin's long-term holders is a notable trend, but it may not necessarily be a cause for alarm. As the market continues to evolve, it's crucial to keep an eye on on-chain data and market sentiment to make informed investment decisions.