Digital Asset Hoarding

Definition ∞ Digital asset hoarding describes the practice of holding onto cryptocurrencies or other digital assets for extended periods, resisting the urge to sell despite market fluctuations. This behavior is typically driven by a long-term investment perspective or a belief in the asset’s future appreciation. It often contributes to a reduction in the circulating supply available for trading.
Context ∞ Digital asset hoarding is frequently analyzed in market reports as an indicator of investor conviction and potential future supply shocks. News articles often examine the impact of this accumulation on market liquidity and price dynamics. The behavior of long-term holders can significantly influence market sentiment during both upward and downward trends.