You’ve made a great point! You're right that the 74% of Bitcoin held by long-term holders (LTHs) creates a tight supply, which can dilate price increases when demand spikes, thereby signals strong conviction in the bitcoin ecosystem. As you mentioned, LTHs don't hold forever. In 2017 and 2021, LTH supply dropped as prices soared, which indicated that there was a profit-takings This propose that long term holders are strategic, often waiting for key price levels for example, previous all-time highs to sell. Understanding these patterns can help time exits. Selling too early might miss gain’s as such, Holding is powerful, but having a plan for taking profits is equally important.
If an investor wants to take profits after holding for a long time, it is entirely up to him. We often see that long-term holders of Bitcoin have sold some of their Bitcoins. If someone wants to take profits by selling their coins after holding for 10 years, that is certainly fine for them. Those investors are doing it strategically. If a large holder wants to sell 10,000 Bitcoins that he has been holding for almost 10 years, it is very normal.
Who are ordinary investors, the situation is completely different. We cannot afford to buy so many Bitcoins at once, so their strategy will not be the same as the strategy of ordinary investors. We should regularly grow our Bitcoin portfolio with our discretionary income as much as we can so that in the long run we can also grow our portfolio according to our investments.