Definition ∞ Bitcoin Holder Cohorts categorize Bitcoin addresses based on the duration their holdings remain unmoved. This analytical approach segments the supply of Bitcoin into groups, reflecting varying investor time horizons and market conviction. These groupings offer insight into the behavioral patterns of different investor classes, from short-term traders to long-term accumulators. Observing these cohorts helps analysts gauge market sentiment and potential future price movements.
Context ∞ Current market discussions frequently cite Bitcoin Holder Cohorts to assess the strength of market conviction amidst price volatility. The actions of long-term holders, often referred to as “hodlers,” are particularly scrutinized for signals of sustained accumulation or potential distribution. Monitoring shifts in these cohorts provides valuable data for understanding supply dynamics and predicting market resilience or weakness.