Asset Hoarding

Definition ∞ Asset Hoarding describes the practice of holding digital assets over extended periods, refraining from selling or active trading. This behavior reduces the circulating supply available on exchanges. It often reflects a long-term investment strategy or strong belief in an asset’s future value. This action can impact market liquidity.
Context ∞ Market observers frequently cite asset hoarding when analyzing supply-side dynamics and potential price movements in cryptocurrency markets. Significant hoarding trends among large holders, sometimes called accumulation, can signal a decrease in immediate selling pressure. This activity is often interpreted as a bullish indicator for an asset’s future valuation.